Massive $875M in Token Unlocks Set to Shake Up Market in June

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As an experienced analyst, I’ve seen firsthand the impact that token unlock events can have on the cryptocurrency market. While these events can present opportunities for investors, they also come with inherent risks that must be carefully considered.

In June, the cryptocurrency sector is preparing for a number of substantial token release events. Based on information from Token Unlocks, approximately $875 million worth of tokens are slated to become accessible once the vesting terms expire for some leading blockchain initiatives.

The release of tradable tokens occurs when previously restricted or locked-in tokens become available. Vesting schemes are put in place to keep token owners, including early investors, engaged with the project and focused on its long-term prosperity, thereby contributing to its lasting stability and expansion.

Notable Token Unlock Details

Beginning on June 1st, a significant amount of tokens from Sui, dYdX, 1inch, and Ethana will become accessible, thereby increasing the current supply of these tokens. Specifically, Sui, the advanced Layer-1 blockchain, is set to release 65.08 million SUI tokens, equivalent to around $66 million in value.

On that very day, a total of 33.33 million DYDX tokens, equating to around 11.91% of the entire supply and valued at roughly $69.67 million, will be introduced into circulation. Notably, 1Inch, which is well-known for its decentralized exchange (DEX) aggregator technology, plans to release 98.7 million tokens. Additionally, Ethena, an independent synthetic currency protocol not reliant on traditional banking systems, intends to make public 53.6 million tokens.

In the latter part of the month, significant blockchain initiatives such as Aptos, Arbitrum, and Starknet will also implement similar events. Specifically, on June 12th, Aptos will release a staggering 11.31 million tokens, equating to approximately 2.59% of its total supply. The value of this imminent distribution is estimated to be around $102.92 million. A considerable portion of these newly released tokens is earmarked for the Aptos Foundation.

Following the release of approximately $2.23 billion worth of ARB tokens into circulation after Arbitrum’s March event, Ethereum Layer 2 is set to unveil an additional 92.65 million tokens, equivalent to around $105 million, on June 16. The previous unlock resulted in a significant price decrease of over 50% for ARB between March and May. However, investors remain optimistic that the upcoming release will not have such a pronounced impact on the token’s value.

As a crypto investor, I’m excited to share that on June 15, Starknet, an Ethereum Layer 2 solution, will distribute 64 million tokens. This represents approximately 5.61% of Starknet’s total circulating supply. With an estimated value of around $80 million, these tokens are primarily earmarked for early contributors and investors.

Potential Impact on the Market

Events where tokens are unlocked can provide investors with potential advantages, but they carry inherent risks. Due to a significant influx of tokens into circulation, there might be temporary price swings as the market adjusts to new supply and demand conditions for those specific tokens. The prevailing pessimistic outlook towards token unlocks could prompt holders to sell off their positions in these tokens.

From my perspective as an analyst, I’d like to point out that besides the specific tokens undergoing large unlocks, the broader cryptocurrency market may be influenced by these events. Initially, the impact will hinge on the decisions of token holders. They might opt to invest in other tokens or exchange their holdings for stablecoins, waiting for market conditions to improve. As investors, it’s crucial to remain aware of these potential scenarios that could unfold following token unlocks.

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2024-05-31 18:55