A substantial wave of token unlocks, exceeding $790 million in value, is scheduled to occur between January 27 and February 3, 2024. These unlocks, encompassing both “cliff” and “linear” releases, involve numerous projects spanning various market capitalizations, from established players like Solana and Dogecoin to relatively lesser-known entities. This injection of new tokens into the circulating supply carries potential implications for market dynamics, including price volatility and trading volume. Understanding the nature and scale of these unlocks is crucial for investors and market participants.
Leading the charge in cliff unlocks, which represent a single, large release of tokens at a predetermined time, is Sui (SUI). A massive 64.19 million SUI tokens, valued at $256.14 million, equivalent to 2.13% of its circulating supply, are slated for release. This sizeable unlock positions SUI as the largest single unlock event of the week. Optimism (OP) follows with a significant unlock of its own, releasing 31.34 million OP tokens worth $45.45 million, representing 2.32% of its circulating supply. Mid-sized projects also contribute to the cliff unlock landscape, with Zeta (ZETA) releasing $19.45 million worth of tokens, Sleepless AI (AI) unlocking $8.88 million, and both DYDX (DYDX) and Galxe (GAL) releasing tokens valued at $9.02 million and $7.14 million, respectively.
In contrast to cliff unlocks, linear unlocks distribute tokens gradually over a defined period. Solana (SOL) dominates the linear unlock schedule with 465,770 tokens worth $111.12 million, representing a modest 0.10% of its circulating supply. Worldcoin (WLD) follows with a more substantial 3.92% supply release, unlocking $77.43 million worth of tokens. Dogecoin (DOGE) also contributes to the linear unlocks, releasing $31.63 million worth of tokens, but this represents a negligible 0.07% of its already massive supply. These varying percentages of circulating supply affected by the unlocks highlight the diverse impact these events can have across different projects.
Several mid-range protocols also participate in the linear unlocks, showcasing a range of unlock volumes relative to their circulating supplies. TIA Protocol (TIA) is set to unlock $31.94 million, impacting 1.39% of its supply, while Avalanche (AVAX) prepares to release $24.63 million. TAO Protocol (TAO) will unlock $21.45 million, representing a relatively small 0.61% of its supply. The diverse scale of these unlocks demonstrates the varying strategies employed by projects in managing token distribution.
Continuing the linear unlock trend, established projects like Polkadot (DOT) and NEAR Protocol (NEAR) are slated to release tokens worth $16.80 million and $13.79 million, respectively. Jito (JTO), Filecoin (FIL), and Ethereum Name Service (ENS) also contribute to the linear unlocks, with releases valued at $11.65 million, $10.54 million, and $9.95 million, respectively. The participation of these established projects underscores the ongoing nature of token distribution within the broader cryptocurrency ecosystem.
Beyond the more prominent projects, a number of lesser-known tokens also feature in the unlock schedule. Ena Protocol (ENA) plans to unlock $9.61 million, representing 0.42% of its circulating supply, while AGI token (AGI) will release $5.30 million, adding 3.01% to its supply. These unlocks, while smaller in absolute value, can still have a significant impact on the price dynamics of these less liquid tokens. Other tokens participating in unlocks include TRIBL token (TRIBL) with a $30.89 million release, STIK with a $6.59 million unlock, SEI Network (SEI) releasing $9.56 million (0.61% of its supply), and MOCA (MOCA) unlocking $7.11 million (2.56% of its circulating tokens).
These upcoming token unlocks, totaling over $790 million, represent a significant injection of supply into the cryptocurrency market. While the impact of these unlocks on individual token prices is difficult to predict with certainty, the sheer volume of tokens entering circulation could exert downward pressure on prices, particularly for projects with less established markets or lower trading volumes. Conversely, some market participants might view these unlocks as an opportunity to accumulate tokens at potentially discounted prices, potentially mitigating downward pressure. The overall market reaction will likely depend on a complex interplay of factors, including investor sentiment, overall market conditions, and the specific project fundamentals. Careful monitoring of these unlocks and their subsequent market impact is essential for informed decision-making within the cryptocurrency space.
