Cardano is preparing to release 18.53 million ADA tokens in early October, marking 0.5% of its total supply.
- Over 18 million ADA tokens will be unlocked this month. A similar unlock was in September, and ADA still saw a positive price action.
Cardano [ADA] is preparing for a significant unlock of ADA tokens into circulation, coinciding with the network’s seventh anniversary of uninterrupted operation.
As the market reacts to this news, ADA has shown signs of a potential recovery after ending the last quarter with a notable decline.
Cardano to unlock over 18 million ADA tokens
According to Token Unlocks, Cardano will unlock 18.53 million ADA tokens on 2nd October, representing 0.5% of the total ADA supply. The value of this unlock is estimated at around $7.37 million.
This comes at a time when the Cardano network is celebrating seven years of uninterrupted activity and is nearing the milestone of 100 million transactions.
Cardano also recently implemented a hardfork to support its growing ecosystem, specifically enabling Decentralized Autonomous Organizations (DAOs).
The unlocked tokens are designated for staking, treasury, and funding reserves. This follows a similar ADA token unlock in September, where another 0.5% of the supply was released.
Cardano’s recent market performance
Cardano ended the previous quarter on a downturn, with AMBCrypto reporting a 6% decline in ADA’s price, dropping from $0.39 to $0.37. However, despite this decline, the asset maintained its bullish trend, holding above its short-term moving average at around $0.35.
As of this writing, ADA has bounced back with a 3% increase, now trading around $0.38.
Source: TradingView
Additionally, technical analysis shows a reversal in the Relative Strength Index (RSI), indicating a shift back into an uptrend.
ADA slips in market cap ranking
As of now, Cardano’s market capitalization stands at $13.4 billion, following its recent price decline. This drop caused ADA to fall from the 10th to the 11th position in the cryptocurrency market capitalization rankings, with Tron overtaking it.
How the upcoming token unlocks will impact ADA’s market cap and ranking remains to be seen.
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As Cardano prepares for the release of over 18 million ADA tokens, market participants are closely watching its impact.
While ADA is showing signs of recovery, the token unlock and ongoing market volatility could play a critical role in its performance in the coming weeks.
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