Next week, the crypto market is set to witness token unlocks totaling over $484 million, nearly double the amount from the previous week, which may result in heightened volatility, particularly among lower-cap tokens.
Major Token Unlocks
Significant one-time unlocks include SUI, ENA, OP, KNMO, ZETA, and NEON, with each releasing over $5 million in tokens. SUI will release tokens worth $125.39 million, the highest among all, representing only 1.29% of its supply. ENA and KNMO will unlock $58.12 million and $14.01 million, respectively, with KNMO's release making up 10.41% of its unlock supply.
Daily Unlocks and Their Impact
Daily token unlocks from major projects are also noteworthy. SOL is set to unlock approximately $70 million worth of tokens, but this is just 0.09% of its total supply, potentially limiting its impact. Other tokens like WLD, TRUMP, and TAO are also unlocking significant amounts valued at $34 million, $31 million, and $17 million respectively, which could affect their prices more noticeably.
Risks for Smaller Tokens
Smaller tokens such as MORPHO, ETHFI, and SEI are unlocking around 2% of their total supply. Given these larger percentages and their smaller market sizes, the unlocks might have a more substantial effect on their prices. Last week, over $250 million in token unlocks occurred, including large unlocks from BLAST (55% of its supply), ACX (80%), and SOON (21%), all posing a risk of price drops.
With the impending token unlocks in the crypto market, certain tokens may experience increased volatility. Investors are advised to exercise caution, considering the potential impacts of these unlocks, especially among smaller-cap tokens.
