The Crypto Market is Set for Significant Shifts as Major Projects Prepare for Large-Scale Token Unlocks

Data from Tokenomist indicates that over $1 billion worth of investor-held tokens will enter circulation across multiple projects

Major cryptocurrency projects, including Etherfi (ETHFI), LayerZero (ZRO), and Grass (GRASS), are preparing for large-scale token unlocks in the coming months, setting the stage for significant shifts in the crypto market.

According to data from Tokenomist, over $1 billion worth of investor-held tokens will enter circulation across multiple projects. This development could have implications for price stability and broader market trends.

ETHFI and ZRO Tokens Face Major Releases

Among the largest unlocks, Etherfi and LayerZero are set to release $274 million and $276 million worth of tokens, respectively. These two projects are among the top four projects with the largest investor tokens to be unlocked in 2024.

These large unlocks could exert significant short-term pressure on their respective markets as the tokens become quickly available for trading.

Furthermore, the GRASS and Morpho (MORPHO) projects have over $700 million in investor emissions to be released. However, the unlock would happen over a much longer timeline—more than a year from now.

While the extended schedule may ease immediate market impact, the sheer size of these emissions remains a key factor.

Tokens like Renzo (REZ) and Spectral (SPEC) will unlock more than 30% of their total token supply. These sizable allocations might influence investor decisions and price volatility in the coming months.

Rapid vs. Gradual Token Supply Increases

Projects like QuantixAI (QAI) and ETHFI will fully unlock their investor allocations within a year. This will rapidly increase the circulating token supply and potential sell pressure.

In contrast, Bera (BERA) and EigenLayer (EIGEN) have more gradual unlock schedules, extending into 2027-2028 for their full investor tokens to be unlocked. This distributes sell pressure over a longer period and reduces immediate market impact.

Monitoring Token Unlocks Is Key for Investors

These unlock events are crucial indicators of potential market movements. Low-free float (FFDV) tokens like REZ and SPEC may experience heightened volatility as supply surges. However, high-FFDV projects like Bera and ZRO could see more controlled price action due to their larger valuation relative to emissions.

With major unlocks approaching, token holders will need to closely follow these developments and monitor any signs of these sell pressures.