The timing and scale of token unlocks can significantly affect market dynamics. Unlocking a large number of tokens at once can suppress buying interest and cause a temporary drop in token prices. Conversely, gradual or planned unlocks can allow the market to absorb the new supply more smoothly.
Token Unlock Events Begin
The unlocking of token locks can bring fluctuations to the market due to investors‘ reactions to the new token supply. Investors adjust their positions based on the unlock schedule and the perceived impact on token value, leading to price fluctuations. Investors should be prepared for potential price fluctuations during token unlock events.
All events will start on the Aptos network. On Sunday, May 12, the unlocking of 11.31 million APT tokens, valued at $99.75 million, will engage the market. This represents 2.64% of the total supply.
By May 14, the dYdX ecosystem will unlock 2.12 million DYDX tokens, valued at $4.58 million, indicating 0.79% of the circulating supply.
On May 15, token unlocks will occur across various ecosystems:
- Starknet network will release 64 million STRK tokens, valued at $80.64 million, marking 8.79% of the circulating supply.
- Cyber network will perform a token unlock valued at $7.34 million, reflecting 4.13% of the circulating supply.
- The largest unlock will occur in the Aevo ecosystem, representing 752.36% of the circulating supply with 827.60 million AEVO tokens.
Will Eyes Turn to Arbitrum?
On May 16, a significant unlock will also occur on the Ethereum Layer-2 (L2) network Arbitrum, with 92.65 ARB tokens valued at $96.44 million being unlocked. This represents 3.49% of the total supply.
On May 17, multiple token unlocks will take place, listed as follows:
- ApeCoin network will unlock 15.60 million APE tokens, valued at $19.97 million (2.48% of the circulating supply).
- The gaming ecosystem ImmutableX will unlock 25.53 million IMX tokens, valued at $55.15 million, representing 1.75% of the circulating supply.
- The artificial intelligence ecosystem Render network will release 760.57 thousand RNDR tokens, valued at $8.24 million, marking 0.20% of the circulating supply.
On May 18, the Manta Network will conduct a token unlock of 6.67 million MANTA tokens, valued at $11.47 million, indicating 2.66% of the circulating supply.
It is known that token unlock events can have significant effects on the market. One of the most significant examples in the past occurred recently on the Arbitrum (ARB) side, where the ARB price dropped from $2 before the unlock to below $1 afterwards.
