Ondo Finance is set to unlock a massive 1.94 billion ONDO tokens on January 18, which represents over 130% of the current circulating supply of the token. This upcoming event is expected to add significant volatility to the altcoin market as it will release billions of dollars’ worth of tokens, including ONDO, as part of a larger unlock schedule.
The total value of the weekly token unlocks is estimated at $3 billion, with major tokens like ONDO, ARB, STRK, and SEI among those affected, marking the largest unlock since November. Ondo Finance’s ONDO token accounts for the majority of this figure, with the unlock representing $2.23 billion worth of tokens, a figure far exceeding ONDO’s average daily trading volume, which typically ranges between $250 million to $300 million.
Token unlocks occur in phases to prevent large-scale sell-offs by initial investors and the project team. This gradual release helps maintain market stability. However, when the size of the unlock is significant—like ONDO’s upcoming release—it can lead to higher volatility.
Research by The Tie shows that when tokens face an unlock event equivalent to 100% of the daily trading volume, price swings are common in the days leading up to and following the release.
As of now, ONDO is trading at $1.14, down 5% for the day and nearly 15% month-to-date. This represents a sharp decline from its record high above $2.10 in mid-December, according to TradingView data. The token has been on a steady downtrend since that peak, and the upcoming unlock event could further impact its price movement.
