- Worldcoin will see its supply grow by over $230 million in September.
- WLD's price has shown an inverse correlation with its circulating supply.
- On-chain data shows that 95% of addresses are holding WLD at a loss.
Worldcoin (WLD) is up 2% on Monday but risks a heavy decline in the coming weeks following unlocks worth over $230 million in September. This follows a nearly 90% decline from its all-time high in March.
Why investors need to be cautious with WLD
Token Unlocks data reveals that crypto identity project Worldcoin will see one of the highest unlocks in September, with over $230 million worth of new supply entering circulation.
Unlocks often cause a token's price to decline if demand fails to catch up with the new supply.
With such heavy unlocks, WLD may see its price decline in the next few weeks. This is evident in its price movement following past unlock events. Since hitting an all-time high of $11.74 on March 10, WLD has had a series of unlock events, per Token Unlocks data. These unlocks, coupled with the crypto market correction, have sent WLD down 87% from its all-time high.
As evidenced in the Santiment chart below, WLD's price and its supply in circulation have been inversely correlated since May 2024.
 [00.06.37, 03 Sep, 2024]-638609191348813954.png)
WLD On-chain metrics
With a market capitalization of around $587 million and a fully diluted valuation of $14.5 billion, WLD still has a huge pool of unlocked tokens that could negatively impact its price in the future.
X user @CryptoCondom also commented on WLD's rising supply:
This is your your friendly reminder that @worldcoin is going to trend to zero. At a $15.1 BILLION dollar FDV, $WLD is exit liquidity for the goat farmers & VCs who are dumping on retail heads daily. $WLD supply inflates 9.56% every week$WLD supply inflates 40.95% every month… pic.twitter.com/noGNdbMZ8g
— CryptoCondom (@crypto_condom) August 28, 2024
A similar trend is visible in Santiment's 180-day Market Value to Realized Value (MVRV) ratio, which shows that all addresses that bought WLD in the past six months have lost an average of over 35%.
Additionally, IntoTheBlock's Global In/Out of the Money, which tracks the number of addresses/coins in profit/loss, reveals that over 95% of addresses are holding WLD at a loss.
WLD Global In/Out of the Money
WLD currently trades around $1.45, a price level last seen in October 2023.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Investors are wary of Ethereum's historical negative September returns, here's why
Ethereum (ETH) is up 2% on Monday despite negative sentiment around ETH's historical weak price action in September. Meanwhile, ETH ETFs continue their weak trend, recording another week of net outflows.
Worldcoin could take a further hit with over $230 million unlocks in September
Worldcoin (WLD) is up 2% on Monday but risks a heavy decline in the coming weeks following unlocks worth over $230 million in September. This follows a nearly 90% decline from its all-time high in March.
Crypto products bleed $305 million as economic data stirs negative sentiment
Crypto investment products witnessed a setback last week, recording net outflows of $305 million as August came to a close. According to CoinShares' weekly report on Monday, the majority of outflows stemmed from Bitcoin ETF investors, showing the asset's sensitivity to interest rate cuts.
Bitcoin rebounds after streak of ETF outflows, weighing on short-term outlook
Bitcoin (BTC) recovers slightly on Monday after falling 11% last week and closing below $57,500, weighed by declining demand from US spot Bitcoin ETFs, which recorded $279.4 million in outflows.
Bitcoin: Will BTC continue its ongoing decline?
Bitcoin (BTC) trades above $59,000 on Friday, but it has lost 7.5% this week so far after being rejected around the daily resistance of $65,000. The decline is supported by lower demand from the US spot Bitcoin ETFs, which registered a net outflow of $103.8 million, falling Bitcoin's Coinbase Premium Index, and a spike in Network Realized Profit/Loss.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.