The crypto market is gearing up for a week of significant token unlocks, with 11 altcoins set to unlock one-time tokens worth more than $5 million each in the next seven days.
The total value of cliff and linear unlocked tokens exceeds $625 million. Traders should be cautious as token unlocks frequently generate negative sentiment among investors, impacting prices negatively.
According to Wu Blockchain, 11 altcoins will have one-time tokens (cliff unlocks) greater than $5 million over the next seven days.
The list includes Sui (SUI), Omni Network (OMNI), Optimism (OP), Kamino (KMNO), Ethena (ENA), ZetaChain (ZETA), Renzo (REZ), Memecoin (MEME), dYdX (DYDX), Gunz(GUN), and IOTA (IOTA).
Out of them, OMNI, KMNO, REZ, and GUNZ are unlocking tokens more than 10% of their circulating supply. Typically, when a token unlock accounts for over 1% of the cryptocurrency’s circulating supply, it will likely have an impact on the price.
This week, traders can monitor these four assets for increased volatility.
Moreover, the large token linear (daily unlock amounts over $1 million) unlocks this week include Solana (SOL), Worldcoin (WLD), Official Trump (TRUMP), Celestia (TIA), Dogecoin (DOGE), Bittensor (TAO), Avalanche (AVAX), Sui (SUI), Polkadot (DOT), Story (IP), Morpho (MORPHO), NEAR Protocol (NEAR), and Jito (JTO).
An increase in a cryptocurrency’s circulating supply is typically bearish. However, planned unlock schedules may have a less significant impact as the community of traders anticipates the unlock and likely positions themselves accordingly.
Still, traders should be cautious as the increased supply from token unlocks frequently generates negative sentiment among investors, which can weigh down prices.
