Major Token Unlocks to Impact Market Liquidity

These are combined with linear unlocks for tokens like SOL, WLD, DOT, NEAR, and SEI, each worth more than $1 million.

Fresh data from TokenUnlocks indicates that the cryptocurrency market will experience another wave of substantial token unlocks over the following six days.

There are large-scale unlocking events planned for SUI, IMX, ZETA, TAIKO, DYDX, and MODE, among others, according to TokenUnlocks. These single large-amount unlocks (more than $5m) will take place over the next 7 days. Additionally, there will be linear large-amount unlocks (more than $1m) for tokens like SOL, WLD, DOT, NEAR, and SEI during the same period. The total estimated value of these impending token unlocks is around $270 million.

This wave of token unlocks follows a series of similar occurrences in August 2024, when tokens from major projects such as Aptos, The Sandbox, and Arbitrum were unlocked, collectively amounting to approximately $230 million. Both investors and analysts paid close attention to these unlock events and anticipated their potential impact on token prices.

CNF had earlier highlighted the August token unlocks, emphasizing their significance in the broader context of market liquidity and price fluctuations.

Other substantial projects, such as Starknet Cyber (CYBER), Render (RNDR), ApeCoin (APE), Ethena (ENA), and Oasis Network (ROSE), are still releasing tokens as anticipated. Each of these ventures introduces a distinct set of variables to the market, with varying levels of investor excitement.

Throughout 2024, token unlocks have been a recurring theme, and they have played an important part in shaping the market's success.

For instance, earlier this year, token unlocks from key projects caused substantial price changes. Investors that reacted quickly to these unlocks either profited from short-term volatility or suffered significant losses, depending on the market mood at the time of the unlock.

These unlocks not only increased the circulating supply of tokens but also caused liquidity shifts, which ultimately influenced token values. In some cases, unlocking tokens led to price decreases as the market absorbed the new supply, while in others, the events were already priced in, having little impact on the token's value.

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