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HBAR Crypto News: According to market reports, it’s estimated that roughly $102 billion worth of crypto tokens are locked up across multiple projects, and are scheduled to be released over the coming years. Token lockup, also commonly known as “vesting period” refers to the time span in which cryptocurrencies are barred from being transferred or traded. On March 1 of this year, a similar token unlock event is planned to take place on the hashgraph-powered Hedera (HBAR) network.
Hedera To Unlock 6.28% Of Supply
The HBAR Distribution Report, which is published on a quarterly basis, outlines that the network is set to unlock 6.28% of its total supply on March 1, which comes to a total of 3.14 billion HBAR tokens. Taking into account the price of HBAR at the time of writing, this would result in the distribution of tokens valued at around $238 million.
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Tokens pertaining to purchase agreements, network governance, and operations are anticipated to consume 0.67% and 1.11% of the unlock, respectively. Additionally, the unlocking event will include tokens addressed to the Ecosystem and Open-source Development Program, which makes up approximately 4.50% of the unlock.
According to data acquired from CoinGape’s crypto market tracker, the total circulating supply of Hedera is somewhere around 25 billion. From this, approximately 50.61% of the total supply has been made available, while 49.39% of the tokens remain locked. 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.
Hedera (HBAR) Price To Dump?
Historically, token unlocks have been regarded as bearish events since they indicate a rise in the total amount of tokens in circulation. This is because, as more tokens become available, there are more sellers than buyers in the market. This can create a situation where sellers have to lower their asking price to find buyers, leading to a drop in the cryptocurrency’s price.
Yet, considering that Hedera has been experiencing such token unlocks over the course of previous couple of years, the level of selling pressure–to some extent–has decreased. Although there is always the risk of a negative effect on the price of the token, a catastrophic occurrence is less likely to take place.
In addition, as summarised by the moving averages, HBAR’s technical analysis (TA) indicators reveal a sell position for the altcoin, advising a “sell” at level 10 and a “buy” at level 5. As a direct result of this recent HBAR crypto news, the price of Hedera is presently trading at $0.075, which represents a decrease of 1.42% over the past 24 hours, compared to a drop of 12.48% recorded over the preceding seven days.
Also Read: New AI Product Sparks Optimism For Hedera; Is HBAR Price Eyeing $1?
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