The current bull run in the cryptocurrency market may be shorter than previous cycles and is not expected to end with a significant rally in alternative coins, according to analysts at 10x Research.
One potential factor that could be contributing to this is the emergence of venture crypto funds, which are projected to hold a substantial portion of coins in the future.
In other news, upcoming token unlocks in the crypto market are raising concerns among analysts, with nearly $2 billion worth of tokens set to be released over the next 10 weeks. This influx of tokens could have a negative impact on alternative coins.
Data from TokenUnlocks reveals that the largest unlock is scheduled for May 15 by Aevo, a layer 2 crypto derivatives platform, releasing 828.93 million AEVO tokens valued at approximately $1.17 billion. Of the total token supply of 1 billion, 18.5% will be distributed to private investors.
Similarly, a smaller unlock of $39.78 million in WLD tokens from Sam Altman’s Worldcoin project is planned for July 24, representing 0.05% of the total token supply or 2.4% of the current circulating supply.
Additionally, on May 12, Aptos is set to unlock 11.31 million APT tokens worth $101.67 million, accounting for around 2.6% of the circulating supply.
Back in April, analysts at 10x Research issued a warning about a potential market correction, citing “unexpected and persistent” inflation as a key trigger. With fewer than three anticipated cuts in the bond market and the 10-year Treasury yield surpassing 4.5%, risk assets are likely to undergo a price adjustment.
In conclusion, the current crypto market cycle may be different from previous ones, with token unlocks and inflation posing potential challenges for the market in the coming weeks.