Altcoin Season Clouded by $5 Billion Token Unlock Wave

The crypto market is showing signs of recovery and a new altcoin season may be underway. However, one analyst warns that investors may overlook a crucial factor that could keep many altcoins under pressure in the coming months.

Around $5 billion worth of insider-held tokens will enter circulation across various platforms over the next six months, which could make it harder for many altcoins to maintain strong rallies. In contrast to 2021, when leading tokens already had most of their supply circulating and demand increased rapidly, today's market structure is very different.

The next unlock wave has already begun, with $670.7 million worth of tokens scheduled to be unlocked in the third week of June alone. Some of the largest unlocks include SPK ($51.45 million), ZRO ($27.11 million), STBL ($11.19 million), KAITO ($8.55 million), ARB ($8.02 million), VANA ($7.19 million), and GWEI ($6.70 million). Despite these concerns, sentiment in the broader altcoin market remains positive.

Crypto analyst Michaël van de Poppe notes that Bitcoin's recent consolidation is helping liquidity flow into altcoins, with some of the strongest performers from earlier this cycle once again attracting attention. However, he also warned that a strong rally could eventually be followed by a sharper correction later in the year.