With a $3B token unlock scheduled this week, the altcoin market could gain momentum, with ONDO taking the lead.

Ondo Finance is preparing for a significant token unlock event on January 18, which will release 1.94 billion ONDO tokens, representing more than 130% of the token’s circulating supply. This move is expected to contribute to increased market volatility in the altcoin sector as billions of dollars worth of tokens are scheduled to be unlocked this week.

According to Tokenomist’s weekly unlock calendar, which includes major tokens like ONDO, ARB, STRK, and SEI, the total value of this week’s unlocks is estimated at $3 billion, the largest since November. Ondo Finance, a platform focused on decentralized tokenization, is at the center of this large-scale release.

The ONDO unlock will free up tokens worth $2.23 billion, which is several times larger than the token’s typical daily trading volume, which has been between $250 million and $300 million recently. Token unlocks are structured to release tokens gradually to prevent sudden sell-offs by early investors and the project team, helping to stabilize the market.

However, the upcoming release of ONDO tokens is likely to inject volatility into the market, given the substantial size of the unlock in relation to both the token’s circulating supply and average daily trading volume. Research from The Tie indicates that tokens experiencing unlocks that represent 100% or more of the average daily volume tend to see significant price fluctuations both before and after the event.

At the time of writing, ONDO was trading at $1.14, marking a 5% decline for the day and nearly a 15% drop month-to-date. The token has been on a downward trajectory since hitting a high above $2.10 in mid-December, according to TradingView data.