Over 1 Billion Hedera Tokens Set To Unlock On June 1, Major HBAR Price Drop Ahead?

HBAR Crypto News: According to information obtained, it’s estimated that roughly $1.2 billion of HBAR tokens — worth $65 million — are scheduled to be released beginning June 1. This comes after 95 million HBARs were released on Saturday, which brought the total amount of released tokens to 62.68%.

2.54 % Of Supply To Be Unlocked

According to the data published by Token Unlock, the network will unlock 2.547% of its total supply on June 1, which is equal to precisely 1,273,353,491 HBARs. Moreover, the Hedera Distribution Report — which is compiled and distributed on a quarterly basis — outlines that the unlock distribution will include 533M HBARs for purchase agreements, 403M HBARs for ecosystem & open source development and the remaining 335M HBARs for network governance & related operations.

At the time of writing, Hedera’s total circulating supply currently stands at about 31 billion which is approximately 62% of its max supply of 50 billion. However, it’s to be noted that, following this unlock, subsequent token release events will not be nearly as significant and will only result in minor additions to the available token supply.

Read More: Cardano’s Technical Director Denies Rumor Of 1 Million TPS, Here’s The Truth

HBAR Price To Suffer?

In the cryptocurrency market, token unlocks have been traditionally viewed as a bearish signal, as they tend to increase the total number of tokens in circulation. As more tokens enter the market, the supply increases, which can lead to an imbalance between sellers and buyers. The greater supply of tokens and the relatively lesser demand for them puts sellers in a disadvantageous position, which can lead them to lower their asking price to attract buyers. As a direct consequence of this, the value of the cryptocurrency may experience a temporary downward trend.

While it is true that token unlocks can lead to a significant decline in the token’s market value, the impact of such an event may not always be as catastrophic as expected. In the case of Hedera, the DAG-based project has experienced several token unlocks over the past few years, which has helped to reduce the level of selling pressure in the market. As a result, the HBAR token is less likely to experience a precipitous decline in price due to the forthcoming token unlock.

In light of this HBAR crypto news, the price of Hedera is currently exchanging hands at $0.0513, which represents a gain of 0.10% over the past 24 hours, compared to a drop of 9.21% recorded over the preceding seven days.

Also Read: Bitcoin-Ether Correlation Dips Below 80% For First Time In 2 Years, What It Means?

Source