Will These Cliff Unlocks Shake the Crypto Market?

• IMX leads the token unlock tally by releasing 2.06% of its supply, worth $46.11M, from community and foundation reserves.
• TAIKO will unlock 19.02% of its supply ($20.28M), while MODE’s 38.46% release ($6.39M) could spark volatility.
• ENA, GAL, HFT, and DYDX together add up to millions in new tokens, influencing liquidity and market dynamics.

The cryptocurrency market is bracing for major token unlocks this week, totaling $82.46 million. These upcoming releases could significantly impact both supply and investor sentiment.

This week’s biggest unlock is IMX (Immutable X), releasing 2.06% of its circulating supply, valued at $46.11 million. This release is part of the project’s ongoing distribution strategy, coming from community and foundation reserves.

Next is the TAIKO token, poised to release a hefty 19.02% of its circulating supply, worth $20.28 million. The MODE token will see an even larger unlock, with 38.46% of its circulating supply ($6.39 million) becoming available, potentially leading to increased liquidity and volatility.

ENA contributes to the week’s total with a smaller but significant unlock of 0.82% of its circulating supply, valued at nearly $3.57 million. Similarly, the GAL token will see a modest release of 0.82% of its circulating supply, worth roughly $2.31 million.

While relatively small, the release of HFT tokens, with an unlock percentage of 3.06% of circulating supply (worth close to $1.95 million), could still have a noticeable market impact.

Lastly, DYDX is slated to unlock 0.68% of the circulating supply valued at $1.46 million. Notably, this is the smallest unlock of the week, with a slight increase in available DYDX tokens.

Token unlocks are crucial for understanding a project’s supply dynamics. However, challenges exist.

Decisions like token burns, incentives, or DAO votes made after the initial token generation event (TGE) can affect unlocked supply. Additionally, some tokens may be counted as circulating but remain locked or restricted by legal contracts, complicating their market impact.

Nonetheless, token unlocks provide valuable insights, allowing investors to anticipate future token releases before they are reflected in the circulating supply metrics. Moreover, comparing unlocked supply with circulating supply helps verify the accuracy of the data, offering a more comprehensive view of a project’s tokenomics.