Is token unlocking a positive or negative for cryptocurrency?

In most cases, token unlocking can trigger a temporary price decline, which is generally considered a result of selling pressure. However, this is not absolute, and the impact depends on specific circumstances.

First, we need to look at the proportion of the unlocked amount. If the unlocked amount only accounts for 1%-2% of the circulating supply, the impact on the market may be very limited. Secondly, the stage of unlocking is also crucial. If 70%-80% of the total supply of tokens has already been unlocked, the impact of the newly unlocked amount on the overall supply will be smaller. Lastly, there is also the possibility of 'bad news being fully priced in.' If the unlocking news has been fully speculated in the market beforehand, a rebound may occur after the unlocking instead of a decline.

For example, the SUI unlocked today, with the unlocked amount only accounting for 2.8% of the total circulating supply, has basically no significant impact.