Token unlocking is the release of tokens that were previously blocked according to fundraising conditions. The project schedules these releases carefully to avoid market pressure and prevent token price declines.
However, factors such as lack of liquidity or profit-taking by early investors can have a significant impact on the dynamics of an asset. Here are 5 major token unlocks to watch out for next week.
Alt Layer (ALT)
- Unlock date: June 25th
- Number of unlocked tokens: 155.21 million ALT
- Current circulation: 1.5 billion ALT
Altlayer is a decentralized protocol that increases blockchain scalability through the concept of restake rollup. It integrates the rollup of multiple stacks such as OP Stacks and Arbitrum Orbit by leveraging the restake mechanism to enhance security, decentralization, and interoperability.
On June 25th, Altair plans to unlock over 100 million ALT tokens. These tokens are allocated for Treasury, community, and ecosystem development.
Read more: Ethereum ReStake : What is it and how does it work?
Yield Guild Games (YGG)
- Unlock Date: June 27th
- Number of tokens unlocked: 16.69 million YGG
- Current circulation: 372 million YGG
Yield Guild Game (YGG) is a gaming community that operates on a play-to-earn model . It brings gamers from all over the world together to participate in various blockchain games and earn cryptocurrency rewards. YGG invests in non-fungible token assets, such as in-game items and virtual lands, which guild members can borrow to use in the game.
In the next few days, YGG will unlock a significant portion of its tokens. These tokens will be distributed to the community, developers, investors, and Treasury to further support the guild's growth and ecosystem development.
Read more: Top 6 Cryptocurrency Gaming Coins to Buy in 2024
SingularityNet (AGIX)
- Unlock date: June 28
- Number of unlocked tokens: 8.57 million AGIX
- Current Circulating Volume: 1.228 billion AGIX
SingularityNet is a decentralized blockchain platform designed for developing and hosting AI applications. AGIX, the platform's native token, is essential for transactions, governance, and rewarding node operators who maintain and develop the network. SingularityNet also supports cross-chain functionality, allowing AGIX tokens to operate on both Cardano and Ethereum networks.
On June 28th, an important event will be held for AGIX token holders: the distribution of unlocked tokens to participants of the AGIX-ADA rewards program. The measure aims to encourage and reward community participation and contribution to the development and expansion of the platform.
Read more: How to invest in artificial intelligence (AI) cryptocurrency?
Optimism (OP)
- Unlock date: June 30th
- Number of unlocked tokens: 31.34 million OP
- Current circulating supply: 108 million OP
Optimism is a layer 2 scaling solution designed to improve transaction speeds and lower costs on the Ethereum mainnet. OP tokens play an important role in governance, allowing holders to vote on proposals and decisions that shape the development and management of the network.
On June 30th, Optimism plans to increase its circulation to over 30 million OP tokens. According to TokenUnlock, the project will distribute these tokens to investors and core contributors to further support its growth and development. However, members of the cryptocurrency community are warning about the possible consequences of this unlock, citing the liquidity situation at major cryptocurrency exchanges as an example.
โCurrently, the liquidity spread on Binance is so severe that if investors decide to dump only 5% of the tokens in the monthly unlock $OP $ARB $APT $SUI The price of the same asset can fall by 30-70%, and it can do so even in an overall downtrendโฆ You never know,โ hiteshi.eth pointed out .
Read more: Optimism vs Arbitrum: Ethereum Layer-2 Rollup Comparison
Ethena (ENA)
- Unlock date: June 30th
- Number of tokens unlocked: 14.89 million ENA
- Current circulation: 1.7 billion ENA
Ethena is a synthetic currency protocol based on Ethereum. It provides a native cryptocurrency solution independent of traditional banks, and provides a dollar-denominated savings vehicle called 'Internet Bond' to users around the world.
ENA token holders can vote on governance proposals. On June 30, the project plans to unlock approximately 15 million ENA for ecosystem development.
Read more: What is the Ethena Protocol and USDe Synthetic Dollar ?
Other tokens to be unlocked in the coming week include Echelon Prime (PRIME), Akala (ACA), and Tornado Cash (TORN), with a total value of over $108 million. Although many people consider token unlocks to be bearish, a well-planned schedule can strengthen the long-term viability of a project. Aligning unlocks with milestones and development progress can help motivate your team, drive community engagement, and foster ecosystem growth.
