As the cryptocurrency market continues its bullish trend, all eyes are on the upcoming token unlocks for major altcoins. These events, scheduled over the next 12 days, could significantly impact market momentum, especially for traders and investors. Here’s everything you need to know.
What is token unlocking?
Token unlocking is the release of previously locked tokens that are reserved for long-term strategic purposes. While this process often aligns with project development milestones, it also creates a significant increase in circulating supply. This can lead to selling pressure on prices, especially if early investors or supporters decide to cash out.
Upcoming unlock: 1 billion dollars in circulation
According to the Tokenomist system, nearly 1 billion dollars worth of tokens will be unlocked across nine altcoins at the beginning of December. These events will certainly shape market dynamics as more tokens enter circulation.
Major altcoins and unlock dates
Cardano (ADA)
Unlock date: November 26
Amount: 20 million ADA
Competing with Ethereum and XRP, the token release of Cardano is expected to make a significant impact on the market.
Ethena (ENA)
Unlock date: November 27
Amount: 8.51 million ENA
A promising DeFi project on Ethereum, ENA tokens will primarily be distributed to ecosystem participants.
Immutable (IMX)
Unlock date: November 29
Amount: 43.4 million IMX
Known for its role in blockchain gaming and NFTs, this unlocking could boost trading activity in the NFT space.
Optimism (OP)
Unlock date: November 30
Amount: 72.09 million OP
As the leading Layer 2 solution for Ethereum, the unlocking of Optimism may affect its growing ecosystem.
1 inch (1INCH)
Unlock date: November 30
Amount: 39.61 million 1INCH
This decentralized exchange aggregation tool is preparing for a significant release.
ZetaChain (ZETA)
Unlock date: December 1
Amount: 40.72 million ZETA
A lesser-known but promising altcoin, the unlocking of ZetaChain may attract attention.
SUI
Unlock date: December 1
Amount: 220.19 million SUI
One of the hottest altcoins currently, the significant unlocking of SUI may impact its price.
dYdX ($DYDX)
Unlock date: December 1
Amount: 12.83 million DYDX
As a key player in decentralized derivatives trading, dYdX remains a noteworthy token.
Jito (JTO)
Unlock date: December 7
Amount: 513.7 million JTO
The largest unlocking event during this period, the release of Jito will flood the market with over half a billion tokens.
Market implications
These token unlocks present both opportunities and risks. On one hand, they can increase liquidity and bring new participants into the ecosystem. On the other hand, the influx of tokens could lead to short-term price declines.
Investors should closely monitor these dates, as well as market sentiment surrounding each project. Those holding these altcoins may want to prepare for potential volatility.