Token Unlock, a platform that uses on-chain data to track vested tokens and inform users of upcoming unlock events, issued a 2022 annual report today showing the highest estimated locked value tokens per the current market price.
The report shows 15 tokens (such as XRP, Filecoin, Optimism, Chainlink, BitDao, ApeCoin, STEPN, Hedera, Axie Infinity, dYdX, ENS, Kadena, Curve DAO, PancakeSwap, and GALA) account for over 75% of the total illiquid tokens.
Of the top 15 largest estimated unlocks, two are relatively equal to $1 billion while seven are worth more than a billion, and six remain below $1 billion in value, as indicated in the figure below.
According to the report, XRP is currently the highest-valued token locked. The report shows about $17.9 billion worth of XRP still locked in the XRPL protocol. The report indicates that such tokens will be released over time at fixed intervals.
As per the report, Filecoin and Optimism are the second and third tokens with the highest estimated locked value tokens after XRP, each holding $4.9 billion and $3.7 billion locked value, respectively.
The report also ranked Chainlink, BitdAO, ApeCoin, and STEPN above the $1 billion mark, with Hedera and Axie Infinity at around $1 billion worth of tokens locked up, as the above figure shows.
The report identified that December 2022 ended with $102.1 billion worth of tokens locked, with a $468 billion market cap and a $57.8 billion Fully Diluted value (FDV). The report further mentioned that 82.1% of all tokens with fixed supply are ready to circulate freely in the market.
The annual report identified XRP as the token with the highest unlock potential this year. Since XRP has a $17.9 billion value locked in tokens, which are set to enter the market, it will unlock over four times more tokens than the second-ranked token, Filecoin.
The report expects Filecoin to unlock $4.9 billion in tokens in 2023. The report shows the potential of various projects to unlock their tokens to the market this year. The document projects an influx of tokens to enter the market, estimating that $102 billion worth of tokens will be unlocked in 2023.
These unlock have a potentially harmful effect on XRP, FIL, and similar tokens. Investors can sell more assets with more tokens in circulation, effectively capping any upside potential. In particular, XRP has several bullish events upcoming throughout the year, but sellers could take the upper hand with more tokens in circulation.
Besides market indicators like circulating supply, trading volume, and market capitalization, total value locked (TVL) is a major crypto indicator popular among investors to examine the overall value of assets – in any fiat currency or US dollar– deposited across all crypto protocols.
TVL reached almost $2 billion globally in 2022, rising from $400 million in the past two years. TVL has become a vital indicator for investors who need to assess if the entire ecosystem or a particular protocol is healthy and worth investing in.
Whenever the TVL of a particular increases, it is accompanied by a rise in liquidity, usability, and popularity. Such factors contribute to the success of the project. A higher TVL means more funds are locked in crypto protocols, with users enjoying more benefits and yields. A lower TVL means lower availability of funds, resulting in lower profits.
Meanwhile, the global cryptocurrency market capitalization has made some significant moves over the past few days and currently sits above $1 trillion at the time of writing.
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