This Altcoin is Set for a Major Unlock Boosting Supply Amid Market Optimism

Investors often feel apprehensive about token unlock events due to their potential influence on market prices, and this altcoin project is preparing for a significant unlock on October 30.

Data indicates that around 176 million previously locked Celestia (TIA) tokens will become available, representing approximately 80% of the total supply. This will mark the largest unlock since TIA’s launch last October.

Token unlocks can exert a bearish pressure on prices. Typically, altcoin projects restrict a portion of their token supply to prevent large sell-offs by early investors and insiders immediately after allocation. Once unlocked, these tokens can be traded, often leading to price declines.

Taran Sabharwal, founder of the OTC trading platform STIX, noted that after this unlock, around 92.3 million TIA tokens will enter circulation, which includes unstaked tokens, those in the 21-day unstaking queue, and roughly 24.1 million unregistered tokens. The estimated maximum selling pressure could reach $460 million.

David Shuttleworth, a partner at Anagram, pointed out that the large volume of unlocked tokens could affect TIA’s price. He remarked that the amount being unlocked far exceeds the average daily trading volume of $50 million to $200 million observed last month, although he suggested that the long-term effects might be positive.

Cryptocurrency analyst Will Clemente added that the overall bullish trend in the crypto market enhances the chances of TIA surprising investors with a price rally, even in light of the upcoming unlock. He noted that Bitcoin’s significant rise has decreased the likelihood of TIA experiencing a downward price trend following the unlock event.