$585M in Token Unlocks Loom: Will Altcoins Face Selling Pressure?

40 minutes ago by · 2 mins read

More than half a billion dollars in multiple altcoins will be unlocked this week, triggering concerns among the crypto community.

Multiple cryptocurrencies will see incoming cliff and linear token unlocks within the next seven days, putting pressure on the investors’ sentiment.

According to Wu Blockchain, Hyperliquid HYPE $25.52 24h volatility: 1.2% Market cap: $6.11 B Vol. 24h: $195.64 M , Sui SUI $1.45 24h volatility: 0.5% Market cap: $5.44 B Vol. 24h: $609.08 M , EigenCloud EIGEN $0.39 24h volatility: 1.0% Market cap: $192.93 M Vol. 24h: $31.61 M , Kamino KMNO $0.0528 24h volatility: 2.4% Market cap: $189.79 M Vol. 24h: $11.93 M , Optimism OP $0.27 24h volatility: 0.7% Market cap: $536.11 M Vol. 24h: $59.00 M , Ethena ENA $0.21 24h volatility: 1.0% Market cap: $1.62 B Vol. 24h: $152.28 M , ZORA and SVL will see large token unlocks, with each one exceeding $5 million in value.

HYPE is leading the list with roughly $251 million in expected tokens to be unlocked at once, also called a cliff unlock.

Since a huge amount of tokens is expected to enter the circulating supply at once, HYPE is currently positioned at a higher shock risk.

RAIN, Solana SOL $124.3 24h volatility: 0.1% Market cap: $70.36 B Vol. 24h: $4.81 B , Official Trump TRUMP $4.94 24h volatility: 0.1% Market cap: $990.89 M Vol. 24h: $171.79 M , Worldcoin WLD $0.50 24h volatility: 1.4% Market cap: $1.34 B Vol. 24h: $87.75 M , Dogecoin DOGE $0.12 24h volatility: 0.1% Market cap: $20.98 B Vol. 24h: $906.46 M , Avalanche AVAX $12.64 24h volatility: 0.2% Market cap: $5.46 B Vol. 24h: $343.47 M and Aster ASTER $0.70 24h volatility: 3.2% Market cap: $1.67 B Vol. 24h: $119.59 M will see large linear unlocks in the same timeframe, Wu Blockchain wrote, citing data from Tokenomist.

Linear unlocks don’t happen suddenly, so it’s easier for the market to absorb the tension.

The total value of the forthcoming token unlocks for this week reaches at least $585 million.

Don’t Worry, Bears Have Your Back

The expectations of huge unlocks this week have already triggered fear, uncertainty, and doubt among the crypto community.

Responding to Wu Blockchain’s X post, users have been complaining about increased selling pressure.

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.

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