Token unlocks refer to the process of gradually releasing coins that were initially held to discourage early investors or team members from quickly selling off large amounts of their holdings.
Based on the findings from The Cambridge Centre for Alternative Finance (CCAF), this particular practice has been shown to have a significant impact on the overall market dynamics, often leading to an increased selling pressure on digital assets.
Another key unlock scheduled for this month is Injective, which will occur on Jan. 21. This event introduces 3.67 million INJ tokens worth $135 million to the market. According to the project's tokenomics, this event represents its final unlock, as 96% of its supply has already been unlocked.
On Jan. 1, the decentralized finance (DeFi) protocol dYdXunlocked over 33 million tokens, or 12.3% of its circulating supply, valued at $111 million. Data from CryptoSlate shows that this event resulted in a 3% decline in the asset's price to $2.37 as of press time.
In comparison to the token release in December, which saw over $500 million worth of tokens being released, this current token release is not as large.
By January 30th, Ethereum's layer-2 network Optimism is scheduled to unlock 24.16 million OP, with an estimated value of $87.7 million, allocated for its team and investors.
On January 18th, Axie Infinity, a play-to-earn (P2E) project, has set the date for its token unlock, which will contribute $31 million worth of AXS tokens to its circulating supply. Additionally, Axie Infinity's base blockchain network, Ronin, has a planned unlock of $75 million scheduled for January 27th.
By January 3rd, Sui, a layer-1 blockchain, is scheduled for a $28 million unlock, which will introduce 34.62 million SUI tokens into circulation.
There are several additional token unlocks scheduled for this month. This includes ApeCoin's $26 million token unlock set for January 17th, Tornado Cash's planned release of $160,000 worth of TORN tokens, and CyberConnect's $8.88 million unlock, among others.
Ripple unlocks 500 million XRP, valued at $248 million, stirring market reaction. Part of routine strategy for liquidity, amid legal disputes with SEC. XRP sees modest decline amidst broader market downturn, but trading volume surges.
Huang BoArbitrum faces a significant challenge with a potential $2 billion token sell-off as 1.11 billion ARB tokens unlock on March 16. This represents 87% of its circulating supply, impacting market dynamics. Trading at $1.89, ARB may test $1.0 psychological resistance amid unfolding developments.
Xu LinWintermute's strategic accumulation of ARB tokens ahead of the unlock indicates a potential profit-seeking move amidst market fluctuations.
SanyaWhy are tokens suddenly so important? Has there been a fundamental change or just a change in the language used?
JinseFinanceRipple unlocks 1 billion XRP, valued at $500 million, in February, initiating strategic sell-offs. Escrow transactions and patterns observed highlight Ripple's influence on short-term price dynamics and investor sentiment in the XRP market.
Huang BoBitget Wallet's Task2Get Season 5 features zkLink's Nexus Alpha mainnet, offering NFT rewards and ZKL tokens. Explore Web3 opportunities with Bitget Wallet.
Huang BoExplore the impact of upcoming token unlocks on the crypto market. Get detailed insights into SPACE ID, Yield Guild Games, dydx, SingularityNET, and Acala token releases, and understand their potential influence on market dynamics and investor strategies
BrianIt is the second-largest number of tokens to be unlocked in any Solana timeframe.
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Coinlive This is step one in a long journey to create universal and fair access to decentralized applications for billions of people.
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