Worldcoin could receive a new impact with over $230 million unlocked in September

• Worldcoin will see its supply increase by over $230 million in September.
• The price of WLD has shown an inverse correlation with its circulating supply.
• On-chain data shows that 95% of addresses hold WLD in loss.

Worldcoin (WLD) rose 2% on Monday, but risks a sharp decline in the coming weeks after unlocking more than $230 million in September. This follows a nearly 90% drop from the all-time high in March.

Why investors need to be wary of WLD

Token Unlocks data reveals that crypto identity project Worldcoin will have one of its biggest unlocks in September, with more than $230 million worth of new supply entering circulation.

Unlocks often cause a token’s price to drop if demand fails to match the new supply.

With such heavy unlocks, WLD could see its price drop over the next few weeks. This is evident in the price movement after previous breakout events. Since hitting an all-time high of $11.74 on March 10, WLD has had a series of unlock events, according to Token Unlocks data. These unlocks, along with the crypto market correction, caused WLD to fall 87% from its all-time high.

As highlighted in the Santiment chart below, the price of WLD and its outstanding supply have been inversely correlated since May 2024.

On-chain WLD values

With a market cap of around $587 million and a fully diluted valuation of $14.5 billion, WLD still has a huge number of unlocked tokens that could negatively impact its price going forward.

User X @CryptoCondom also commented on WLD’s growing supply:

A similar trend is visible in Santiment’s 180-day Market Value to Realized Value (MVRV) report, which shows that all addresses that bought WLD in the past six months have lost more than 35% on average.

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 hold WLD in loss.

WLD Global In/Out of the Money

WLD is currently trading around $1.45, a price level last seen in October 2023.