Token Unlocks and Price Action: What to Expect as $2B Worth of New Tokens Hit the Market This October

Traders and analysts closely watch token unlock schedules to anticipate market trends. Given the basic principles of supply and demand, analysts believe that introducing more tokens into the market can lead to price drops for the affected cryptocurrencies.

Crypto users anticipated massive token unlocks in October that could influence the prices of related cryptocurrencies. With less than two weeks into the month, some crypto projects had already experienced an influx of new tokens, notably impacting their overall value.

One such token was Immutable X (IMX), which an Altcoin Buzz analyst highlighted lost about 11% value during a recent podcast. The analysis noted the occurrence of a large token unlock for IMX, contributing to the observed price decrease.

According to the analysts, over $2 billion worth of new tokens were expected to hit the crypto market in October, with roughly $300 million released in the first week alone. Among the notable releases was Sui’s $115 million token unlock, which marked the largest token release in the first week of October.

Traders and analysts typically keep a close eye on token unlock schedules to anticipate upcoming market trends. Given the basic principles of supply and demand, introducing more tokens into the market could lead to price drops for the affected cryptocurrencies. The Altcoin Buzz host noted that the downward price action seen at the beginning of October was a result of these ongoing token unlocks.

Beyond Sui and Immutable X, several other projects were scheduled to unlock new tokens this month. Aptos (APT), a layer-1 blockchain with a focus on scalability, is set to release 11.31 million APT tokens (worth about $99 million) on October 12.

This will be the second batch of tokens released by Aptos, following the initial unlock of 100 million APT tokens at the network’s launch on October 12, 2022. In total, 1 billion APT tokens will be released over a four-year period, with 50% of the tokens allocated to the community.

Aptos plans to distribute the tokens to various areas, including the Foundation (10%), the community (20%), core contributors (25%), and investors (45%). Crypto analysts anticipate this unlock will put downward pressure on APT’s price, potentially causing temporary pullbacks from its current upward trend.

Also having a token unlock this month is Axie Infinity, a popular play-to-earn blockchain gaming platform. The project will be unlocking 9.25 million AXS tokens (worth roughly $42.5 million), which represents 6.09% of AXS’s circulating supply.

Axie Infinity will distribute the new tokens across its play-to-earn project (40%), staking rewards (20%), and the project team (40%). The unlocked tokens will be used to continue developing and maintaining the Axie Infinity game and ecosystem.

Arbitrum (ARB), a leading layer-2 scaling solution for Ethereum, will also be unlocking a batch of tokens on October 16. The project will be unlocking 92.65 million ARB tokens (worth approximately $51 million), which represents about 2.56% of ARB’s circulating supply.

The tokens will be distributed among the project’s team (20%), future team members (15%), advisors (5%), and investors (60%). The unlocked tokens will be used to continue scaling Ethereum and for future development of Arbitrum.

Finally, Celestia (TIA), a modular data availability network, will be releasing 175.59 million TIA tokens on October 30. The project will be distributing these tokens to its early backers (from Series A and B funding rounds), seed round investors, and initial core contributors.

The tokens will be used to continue developing and maintaining the Celestia network, which is designed to provide a scalable and decentralized data availability layer for other blockchains.

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