Around $500 million worth of cryptocurrency tokens are expected to be released into the markets in the coming week, according to data from TokenUnlocks. These unlocks, which increase the circulating supply of the tokens, are a key event in a project’s development and often impact market sentiment.
Types of Unlocks: Linear vs Cliff
Token unlocks generally follow two patterns: linear and cliff. Linear unlocks gradually release tokens into the market over time, helping to minimize immediate market disruptions. In contrast, cliff unlocks release all tokens at once, which can result in sharp price fluctuations.
Major Linear Unlocks This Week
Several large linear unlocks are scheduled, including:
- Solana (SOL): 524,030 SOL tokens worth $76.8 million, adding 0.11% to its circulating supply.
- Worldcoin (WLD): 37.23 million WLD tokens worth $72.2 million, increasing supply by 7.32%.
- Bittensor (TAO): 71,760 TAO tokens valued at $45 million, adding 0.97% to supply.
- Avalanche (AVAX): 700,000 AVAX tokens worth $19 million, boosting supply by 0.17%.
Impact of Cliff Unlocks
Cliff can create immediate volatility as large amounts of tokens enter the market simultaneously. This week’s cliff unlocks include:
- Aptos (APT): 11.31 million APT tokens worth $99.3 million (2.25% supply increase).
- Optimism (OP): 12.47 million OP tokens valued at $20 million.
- Taiko (TAIKO): 12 million TAIKO tokens worth $16.7 million (15.62% supply increase).
As these unlocks unfold, the market will closely watch how investors react, with the potential for both opportunities and risks depending on how the new tokens are absorbed into the market.
