According to Tokenomist, large cliff unlocks (single unlocks exceeding $5 million) scheduled over the next 7 days include HYPE, SUI, EIGEN, KMNO, OP, ENA, ZORA, and SVL. Large linear unlocks (daily unlocks exceeding $1 million) over the same period include RAIN, SOL, TRUMP, WLD,… pic.twitter.com/ZBllI1K6lq
It’s important to note that token unlocks do not change or alter the fundamentals, technology, and utility of a cryptocurrency.
Instead, these are the tokens that have been locked for the founders, early investors, team, or partners of a project.
Naturally, the market expects selling pressure when large token unlocks are in line. However, some investors might not sell anytime soon, either due to future sentiment, bear market, or long-term utility.
Currently, many tokens are already far from their ATHs. For example, SOL is down by 57% from its top price of $294. HYPE has recorded a pretty similar movement and is currently down by 56% from its ATH of $59.
Overall, the global crypto market cap is down by $1.2 trillion since early October.
Since some investors would prefer to wait for a better price point, the selling pressure would likely be much lower than the market expects.
For example, the crypto market didn’t see high volatility after the $309 million token unlocks on Dec. 15. Instead, most of the assets continued sideways movements.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Wahid has been analyzing and reporting on the latest trends in the decentralized ecosystem since 2019. He has over 4,000 articles to his name and his work has been featured on some of the leading outlets including Yahoo Finance, Investing.com, Cointelegraph, and Benzinga. Other than reporting, Wahid likes to connect the dots between DeFi and macro on his newsletter, On-chain Monk.