Ondo Finance is set to release 1.94 billion ONDO tokens on January 18, which will account for more than 130% of the token’s current circulating supply. This event is part of a broader token unlock schedule that could stir up significant volatility in the altcoin market. According to data from Tokenomist, the total value of tokens being unlocked this week across various projects, including ONDO, ARB, STRK, and SEI, amounts to $3 billion—the largest such release since November.
The majority of the $3 billion unlock comes from Ondo Finance’s ONDO token. On January 18, the platform will unlock $2.23 billion worth of ONDO, a release that is several times larger than the token’s average daily trading volume, which has recently ranged between $250 million and $300 million.
Unlocks refer to the scheduled release of tokens that were initially frozen to prevent early investors and project teams from selling large quantities at once, which could destabilize the market. These staggered releases help prevent sudden price fluctuations. However, in some cases, such as with ONDO, the unlock size can exceed the token’s circulating supply or average daily trading volume, potentially leading to increased market volatility.
Research by The Tie has shown that tokens undergoing unlocks equivalent to 100% of their average daily volume tend to experience heightened volatility before and after the event.
At the time of writing, ONDO was trading at $1.14, its lowest price since December 2, reflecting a 5% drop for the day and a nearly 15% decline for the month. The token has been on a downward trajectory since reaching an all-time high above $2.10 on December 16, according to TradingView data.
