Rising Token Supply Is Crushing Some Altcoin Prices
The post Rising Token Supply Is Crushing Some Altcoin Prices appeared on BitcoinEthereumNews.com. Token supply surges are outpacing demand, leading to widespread price declines. Projects like Taiko and Pyth show weak market absorption despite higher circulation. Morpho shows relative resilience, but most tokens face steep valuation pressures. A new analysis highlights a growing concern in the altcoin market; that of several crypto projects seeing dramatic increases in token supply putting severe downward pressure on prices. In most cases, markets have struggled to absorb the new supply, with price and market cap often declining in tandem. This trend underlines a concerning mismatch between token emissions and investor demand, which is placing pressure on valuations across multiple ecosystems. According to data from Tokenomist, several projects have seen their circulating supply surge over the past month, but this increase has, in most cases, failed to be absorbed by the market, leading to significant price declines. Over the past 30 days, several tokens saw significant increases in circulating supply. Key Observations:• All tokens with the highest 30D supply growth posted negative returns, confirming continued underperformance post-emissions. • Circulating supply growth ranged from +25%… pic.twitter.com/L5KLvHCf5B — Tokenomist (prev. TokenUnlocks) (@Tokenomist_ai) June 12, 2025 Related: $81.9 Million in Token Unlocks Set for May 5-11 as ENA and SPEC Lead in Volume Taiko and Pyth Prices Plunge as New Supply Hits the Market Taiko (TAIKO) provides a stark example. Its circulating supply jumped by a massive 71.9% over the period. While its market cap did rise by 14.5%, it was not nearly enough to offset the flood of new tokens, resulting in a 33.4% price drop. As of press time, Taiko is trading at $0.5613, down 1.92% over the past week. The slight 24-hour uptick of 3.82% offers little relief from the longer-term downtrend. Similarly, Pyth Network increased its circulating supply by 58.6%, while its market cap fell 2.4%. This…
The post Rising Token Supply Is Crushing Some Altcoin Prices appeared on BitcoinEthereumNews.com.
Token supply surges are outpacing demand, leading to widespread price declines. Projects like Taiko and Pyth show weak market absorption despite higher circulation. Morpho shows relative resilience, but most tokens face steep valuation pressures. A new analysis highlights a growing concern in the altcoin market; that of several crypto projects seeing dramatic increases in token supply putting severe downward pressure on prices. In most cases, markets have struggled to absorb the new supply, with price and market cap often declining in tandem. This trend underlines a concerning mismatch between token emissions and investor demand, which is placing pressure on valuations across multiple ecosystems. According to data from Tokenomist, several projects have seen their circulating supply surge over the past month, but this increase has, in most cases, failed to be absorbed by the market, leading to significant price declines. Over the past 30 days, several tokens saw significant increases in circulating supply. Key Observations:• All tokens with the highest 30D supply growth posted negative returns, confirming continued underperformance post-emissions. • Circulating supply growth ranged from +25%… pic.twitter.com/L5KLvHCf5B — Tokenomist (prev. TokenUnlocks) (@Tokenomist_ai) June 12, 2025 Related: $81.9 Million in Token Unlocks Set for May 5-11 as ENA and SPEC Lead in Volume Taiko and Pyth Prices Plunge as New Supply Hits the Market Taiko (TAIKO) provides a stark example. Its circulating supply jumped by a massive 71.9% over the period. While its market cap did rise by 14.5%, it was not nearly enough to offset the flood of new tokens, resulting in a 33.4% price drop. As of press time, Taiko is trading at $0.5613, down 1.92% over the past week. The slight 24-hour uptick of 3.82% offers little relief from the longer-term downtrend. Similarly, Pyth Network increased its circulating supply by 58.6%, while its market cap fell 2.4%. This…
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