The cryptocurrency market is bracing for a series of significant token unlocks in the coming days and weeks, events that frequently inject volatility into asset prices.
Token unlocks refer to the scheduled release of previously restricted cryptocurrency tokens into the circulating supply, often from allocations designated for teams, early investors, or project development. While part of a project’s long-term vesting schedule, these events can lead to increased selling pressure as newly unlocked tokens become liquid.
Investors and traders closely monitor these unlock schedules due to their potential to influence market dynamics. A large influx of tokens, particularly if released to entities looking to realize gains or cover operational costs, can dilute market supply and exert downward pressure on prices.
According to recent data, several prominent projects are slated for upcoming unlocks:
- EIGEN is set to release $1.33 million (0.42% of its circulating supply) within the next day and a half.
- IOTA will see $2.25 million (0.39%) unlocked in a similar timeframe.
- More substantial unlocks include VENOM, which will release $10.00 million (2.84%) in approximately two days.
- Further out, OP (Optimism) has an updated unlock of $15.51 million (1.79%) in about six days.
- A particularly notable unlock is for SUI, with $110.43 million (1.30%) entering circulation in roughly seven days.
- Other projects like MOCA ($157.70K, 0.08%), FET ($1.85M, 0.12%), TRIBL ($34.98K, 9.17%), DYDX ($1.85M, 0.53%), ENA ($9.87M, 0.67%), and 1INCH ($5.43K, <0.01%) also have scheduled releases.
The released percentages, relative to the current circulating supply, are crucial for assessing potential impact.
While smaller percentage unlocks may have minimal effects, larger releases, especially for tokens with lower liquidity, can lead to more pronounced price fluctuations. As the market remains sensitive to various macroeconomic and geopolitical factors, monitoring these scheduled token unlocks becomes an essential component of informed trading strategies.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/upcoming-token-unlocks-poised-to-influence-crypto-market-dynamics/