A significant wave of token unlocks is anticipated to impact the altcoin market this week, with Dogecoin being one of the most prominent cryptocurrencies undergoing notable unlocks. Given the current market volatility, these unlocks could potentially influence Dogecoin's price. However, due to its substantial liquidity, there is a strong likelihood that the meme coin will manage this influx without significant disruption.
According to a report by Wu Blockchain, numerous token unlocks are scheduled to occur over the next seven days in the altcoin market. The focus is particularly on linear unlocks, which will extend into the first week of August, introducing hundreds of millions of dollars into circulation. Notably, Dogecoin is expected to see approximately 95.5 million DOGE tokens added to its supply, representing an increase of about 0.06% to the circulating supply. At the current market valuation, this equates to approximately $22.9 million worth of new tokens.
Token unlocks typically have the potential to affect the price of digital assets, and Dogecoin is not exempt from this phenomenon. Nevertheless, considering the cryptocurrency's daily trading volume in the billions and the robust liquidity available on major exchanges, it is probable that the DOGE market will effectively absorb this additional supply with minimal impact on its price. Furthermore, the 95 million tokens will not be released all at once; instead, as part of a linear unlock, they will be distributed in smaller increments, facilitating smoother absorption into the market.
While Dogecoin's unlock is significant, it is not the largest expected this week. That title belongs to Solana, which is set to unlock 465,770 tokens valued at an impressive $87 million, constituting 0.09% of its total supply. Following Solana, the TRUMP token will unlock 4.89 million tokens worth $50.13 million, representing 1.67% of its total supply. Worldcoin (WLD) is also notable, with an expected 37.23 million tokens to be unlocked, valued at $44.67 million, or 2.16% of the total supply. Other significant unlocks include TAO with 50,400 tokens worth $21.49 million, Avalanche (AVAX) with 700,000 tokens valued at $18.07 million, and Celestia (TIA) with 6.96 million tokens worth $14.20 million.
