LAB declined 13.41% over the last 24 hours and traded at $14.71, even as trading volume climbed 15.67% to $50.47 million. The decline renewed attention on concerns surrounding the project’s token distribution and supply schedule.
Tokenomics concerns intensified last month after on-chain researcher ZachXBT alleged that opaque OTC deals, unilateral vesting changes, and private loan arrangements contributed to LAB’s rapid rise.
Around the same period, Arkham highlighted claims that a single entity could control a substantial portion of the token supply, fueling debate over ownership concentration within the ecosystem. Those discussions resurfaced as LAB continued releasing tokens into circulation through scheduled unlocks.
Market participants recently pointed to ongoing daily unlocks of roughly 0.05% of supply through June, while larger unlock schedules remain ahead.
Current projections indicate that an additional 0.19% of supply worth approximately $16.98 million is scheduled between the 15th of July and the 13th of October, followed by another 0.18% tranche worth around $16.51 million extending into 2028.
Are traders preparing for unlock-driven pressure?
Market positioning reflected growing caution among professional traders.
Binance Top Trader data showed that short accounts represented 69.23% of positions, while long accounts accounted for just 30.77%. This imbalance emerged as discussions surrounding LAB’s daily unlock schedule intensified.
Many traders appeared to view the steady flow of new supply as a potential headwind for price appreciation, particularly if demand slowed.
The concentration of bearish positioning suggested that market participants increasingly expected tokenomics concerns to influence price action in the near term.
Even so, such crowded positioning occasionally created vulnerabilities for short sellers.
Demand continues absorbing supply near support
Price action showed that buyers remained active despite the growing focus on unlock-related risks.
LAB defended the $14.49 support level and recovered toward $16.15 after the recent decline.
This reaction indicated that demand continued offsetting a portion of the supply entering circulation each day.
The market therefore remained caught between two competing narratives. On one side, critics pointed to ownership concentration and ongoing unlocks as reasons for caution.
On the other, buyers continued stepping in near established support zones.
Resistance remained positioned near $17.06, where sellers repeatedly limited advances during recent sessions.
Therefore, the next move depend on whether buyers could maintain their appetite for LAB while millions of newly unlocked tokens continued entering the market daily.
LAB funding signals shift toward caution
Sentiment across the derivatives market weakened alongside the increase in bearish positioning.
LAB’s LAB’s OI-Weighted Funding dropped to -0.0291%, moving into negative territory after spending much of the previous period above zero.
The shift indicated that traders had become willing to pay to maintain short exposure.
The change aligned closely with concerns surrounding LAB’s ownership structure and future token issuance schedule.
Negative funding often reflected expectations of additional downside, particularly when accompanied by a heavily skewed long-short ratio.
Ultimately, LAB remained under pressure as concerns over ownership concentration and future token unlocks continued influencing sentiment.
Traders increasingly favored short positions, while funding rates reflected growing caution. Even so, buyers defended the $14.49 support zone and RSI recovered above neutral levels.
If demand continues absorbing upcoming supply releases, LAB could challenge $17.06. Otherwise, the tokenomics narrative may continue weighing on price.
Final Summary
- Traders remain cautious as upcoming unlocks keep supply concerns in focus.
- Buyers continue defending support, but resistance still limits recovery attempts.
