This week could see a boost in the altcoin market, fueled by a $3B token unlock plan, as ONDO leads the way.

Ondo Finance is preparing for a significant token unlock event on January 18, when 1.94 billion ONDO tokens will be released, which represents over 130% of the token’s current circulating supply. This token release is part of a broader schedule that is expected to increase volatility in the altcoin market. According to Tokenomist’s weekly unlock calendar, the total value of the tokens being unlocked this week across several projects, including ONDO, ARB, STRK, and SEI, is estimated to be worth $3 billion—marking the largest unlock event since November.

Ondo Finance’s ONDO token dominates this $3 billion total. The January 18 unlock will release $2.23 billion worth of ONDO tokens, far exceeding its daily trading volume, which has recently ranged between $250 million and $300 million.

Unlocks refer to the gradual release of tokens that were previously locked to prevent early investors or project team members from flooding the market. This ensures that token sales don’t cause abrupt price swings or market instability. However, the ONDO release is several times larger than the average daily trading volume and token circulation, which could potentially stir up price volatility.

Research by The Tie suggests that when a token unlock represents 100% or more of the token’s daily trading volume, it typically leads to increased market fluctuations both before and after the event.

At the time of writing, ONDO’s price had dropped to $1.14, the lowest level seen since December 2. This represents a 5% drop on the day and nearly a 15% decrease for the month. The token has been in a downtrend since reaching its all-time high of over $2.10 on December 16, according to TradingView data.