Total Locked Token Values for 38 Projects Declined by 89.7% in One Year

According to CryptoMonday.de data presentation, 38 projects saw their TLTV drop by a staggering 89.7% between January 2022 and January 2023. On 1/1/2022, these projects had a combined TLTV of $142.51 billion, which plummeted to just $14.66 billion 12 months later.

According to CryptoMonday’s CEO Jonathan Merry, that drop was primarily due to the bear market ravaging the crypto space since late 2021. The global crypto market shrunk by 64% from a $2.3T valuation to $827B. Another factor that led to that fall in the projects’ TLTVs was the amount of token unlocks (TUs) experienced in 2022. TU or vesting schedule is the procedure of releasing locked tokens into the market over time.

Merry explains, “2021/22 crypto winter played an important role in this decline in TLTVs across these 38 projects. As prices fell across the board, investors became more risk-averse, shifting from high-risk assets to safer investments. This resulted in further liquidation pressures on tokens and led to an even larger decrease in TLTV for the 38 projects.”