August is poised to be a significant month for token unlocks, with nearly $1.5 billion worth of tokens set to be released into the market. Among the notable releases, Ripple's XRP tokens will play a major role, contributing a substantial $609 million worth of tokens on August 1.
Major Token Unlocks: XRP Leads the Pack
Ripple, the company behind the XRP Ledger blockchain, has consistently unlocked up to 1 billion XRP tokens on the first day of each month since 2017. These unlocks are managed through several main escrow wallets, including Ripple (24) and Ripple (25), ensuring an even distribution. However, not all released tokens enter circulation immediately. For instance, Ripple re-escrowed 800 million of the 1 billion XRP tokens unlocked on June 1 but still sold approximately 300 million XRP, valued at $182 million at that time.
Despite the large unlocks, the actual amount of XRP entering the market is often less, thanks to Ripple's re-escrow strategy. This approach aims to manage the token supply and stabilize the market.
Other Significant Unlocks in August
Besides XRP, other major crypto projects will also unlock substantial token amounts in August. Layer-1 network Avalanche and cross-chain bridging platform Wormhole are set to release a combined $449 million worth of tokens. Specifically, Wormhole will unlock 600 million WORM tokens (33.3% of its circulating supply), valued at $180.5 million, on August 3. Avalanche will release 9.4 million AVAX tokens (2.4% of its circulating supply), worth $268 million, on August 20.
Token Unlocks on August 1
On August 1, several projects, including Sui, dYdX, and ZetaChain, will release significant portions of their token supplies. Sui will unlock 64 million tokens, valued at $50 million, accounting for 2.56% of its circulating supply. dYdX will release 8.33 million tokens, worth nearly $11 million, representing 3.65% of its circulating supply, distributed among investors, founders, and employees. ZetaChain will unlock 53.9 million ZETA tokens, valued at around $34.5 million, which is 18.9% of its circulating supply.
Additional August Token Releases
Later in August, more token unlocks are scheduled:
ImmutableX will unlock 32.5 million IMX tokens on August 9, valued at $49 million (2.11% of its circulating supply).
Aptos, a rival to Sui, will release $80 million worth of APT tokens on August 12.
Web3 gaming platform The Sandbox will unlock $69 million worth of SAND tokens on August 14.
Ethereum layer-2 networks Starknet and Arbitrum will also see token releases. Starknet will unlock 64 million STRK tokens on August 15, valued at $35 million (4.4% of its circulating supply). Arbitrum will release 92.6 million ARB tokens on August 16, worth $67 million (2.8% of its circulating supply).
These significant token unlocks across various projects highlight a dynamic and potentially volatile month for the cryptocurrency market. Investors and traders should stay informed about these events to better navigate the market movements and opportunities.
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