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The Optimism (OP) cryptocurrency will see the unlocking of nearly 31 million coins.
Sui is ready to face the unlocking of 69 million gold coins.
Ethena (ENA) will experience nearly 14 million ENA unlocked.
Cryptocurrencies Optimism (OP), Sui (SUI), and Ethena (ENA) are among the currencies that will see massive liquidations in the coming days. This is mainly attributed to the massive token unlocking that is about to occur in the cryptocurrency space.
Approximately $118 million worth of tokens will soon be collectively unlocked, including OP, SUI, and ENA tokens. These cliff unlocks are expected to trigger large-scale liquidations due to the huge price risk.
It is worth noting that token unlocking refers to the phenomenon that previously locked tokens are released to the market. This release, in turn, brings new inflows to the market supply of tokens, which has a negative impact on token economics.
So let’s take a look at the upcoming unlocking of OP, SUI, and ENA tokens.
Optimistic (OP)
The Optimism cryptocurrency is an L2 on Ethereum with a market cap of $2.04 billion and 31.34 million OPs are expected to be unlocked on June 30. This represents 2.88% of the token’s circulating supply and is worth $56.73 million.
Data from the Token Unlocks App shows that as of now, 26% of the locked amount has been unlocked, equivalent to 1.13 billion OP.
Meanwhile, OP price is up 0.58% today and is trading at $1.83. A significant increase in supply in the coming days is expected to cause a bearish turn in prices.
Sui
Meanwhile, the Sui cryptocurrency will unlock up to 69.3 million tokens on July 1. This is equivalent to 2.88% of Sui’s market supply and is worth $57.37 million.
On-chain data shows that as of now, 24% of the locked Sui has been unlocked, totaling up to 2.43 billion SUI.
The Sui network has a market cap of $1.99 billion, while the cryptocurrency is trading at $0.8216, showing signs of a correction over the past day. It is worth noting that given the upcoming massive unlock, the price could plunge further.
ENA
Likewise, ENA is set to unlock 14.89 million coins on June 30. This is equivalent to 0.92% of the cryptocurrency’s circulating supply and is worth $8.1 million.
Interestingly, only 8% of locked tokens have been unlocked to date, worth 1.25 billion ENA.
Meanwhile, ENA price has fallen 6.26% in the past day and is trading at $0.5465. Ethena has a market cap of $830.54 million and similar to the above tokens, ENA price is also at risk of falling, paving the way for liquidations.
Additionally, it is worth noting that unlocking tokens equal to or exceeding 1% of the circulating supply can have a severe negative impact on the token price. Cryptocurrency market participants continue to closely monitor the price action of these tokens.
Some of the other tokens that will experience this setback in the coming days include Galxe, ZetaChain, and Manta Network, among others. Galxe (GAL) will unlock the equivalent of 2.6% of its circulating supply, while ZetaChain (ZETA) and MANTA will unlock 1.9% and 0.6%, respectively.
