In August 2023, there is a decrease in the number of token unlocks observed in the cryptocurrency market. However, events from major projects could lead to increased market volatility.
Unlocking Tokens of Major Projects
The largest unlock this month will be from the Sui project, releasing tokens worth $167 million. With less than 35% of its total supply in circulation, this could trigger selling pressure due to the token's inflated valuation. Next is Fasttoken with a $91 million unlock; however, its nearly complete supply already on the market may soften its impact.
Trends in Token Unlocking Analysis
Mid-month will see unlocks from Aptos, Avalanche, and Arbitrum ranging from $39 million to $51 million. Additionally, smaller-cap tokens such as Starknet and Kaito could see amplified movements due to low liquidity and circulating supply. Analysts note that the decrease in unlocks may not indicate weakening demand, as Polymath CEO Vincent Kadar highlights.
Market Prospects and Unlocking Impact
Analysts emphasize that token unlocks now reflect changing strategies rather than simple release schedules. Investors are shifting their focus from short-term dilution fears to the long-term economics behind these projects. Furthermore, a sign of market maturity is the growing understanding of vesting dynamics among market participants.
Therefore, although the number of token unlocks decreased in August, events in major projects and changes in investor strategies may influence market volatility. This indicates a more mature approach among market participants towards token analysis.
