How Token Unlocks Affect Price

Small unlocks (0 to 1% increase in circulating supply) do not have a significant impact on token prices, while larger unlocks (more than 1% increase) indicate a drop in price as the unlock size increases.

Unlocks - additional tokens are circulated in the market. When the number of tokens available for sale increases, the supply increases. If this increase in supply is not accompanied by an increase in demand, it can lead to market imbalances

Token unlocks have a significant impact on cryptocurrency prices, volatility, and overall market dynamics. The timing of changes in an asset's supply - from large-scale airdrops to subtle linear unlocks - is critical.

As more tokens are unlocked, they increase the circulating supply, potentially leading to increased selling pressure and a decrease in price. Unlocks themselves may not affect price, but the anticipation of unlocks can. Quite often the price of a token experiences difficulties when a big unlock is approaching.