The timing and scale of token unlocks can have a notable impact on market dynamics. Unlocking a large number of tokens at once can reduce buying interest and cause a temporary decline in token prices. On the other hand, gradual or planned unlocks can help the market absorb the new supply more smoothly.
Token Unlock Events Begin
Token unlock events can lead to market fluctuations as investors react to the new token supply. Investors may adjust their positions based on the unlock schedule and its anticipated impact on token value, resulting in price changes. Investors should be ready for potential price fluctuations during token unlock events.
All events will take place on the Aptos network, starting on Sunday, May 12, with the unlocking of 11.31 million APT tokens worth $99.75 million, accounting for 2.64% of the total supply. Similarly, on May 14, the dYdX ecosystem will unlock 2.12 million DYDX tokens valued at $4.58 million, constituting 0.79% of the circulating supply.
Several ecosystems will have token unlocks on May 15:
- Starknet network will release 64 million STRK tokens valued at $80.64 million, accounting for 8.79% of the circulating supply.
- Cyber network will unlock tokens worth $7.34 million, reflecting 4.13% of the circulating supply.
- The largest unlock will be in the Aevo ecosystem, with 827.60 million AEVO tokens, making up 752.36% of its circulating supply.
Will Eyes Turn to Arbitrum?
On May 16, a significant token unlock will occur on the Ethereum Layer-2 network Arbitrum, with 92.65 million ARB tokens valued at $96.44 million being unlocked, representing 3.49% of the total supply. Friday, May 17, will see multiple token unlocks:
- ApeCoin network will unlock 15.60 million APE tokens valued at $19.97 million, accounting for 2.48% of the circulating supply.
- ImmutableX gaming ecosystem will unlock 25.53 million IMX tokens valued at $55.15 million, making up 1.75% of the circulating supply.
- The Render network will release 760.57 thousand RNDR tokens worth $8.24 million, constituting 0.20% of the circulating supply.
On May 18, the Manta Network will unlock 6.67 million MANTA tokens valued at $11.47 million, making up 2.66% of the circulating supply.
It is evident that token unlock events can significantly influence the market. A recent example is the ARB token, where its price dropped below $1 after being $2 pre-unlock.
