Token unlocking is the event of releasing previously locked tokens, usually related to financing agreements. Projects often strategize around these events to minimize market pressure and maintain price stability.
VX: TTZS6308
The following are five notable token unlocking events that occurred this week:
ENA
Unlock date: January 8
Unlocked token amount: 12.86 million ENA
Current circulating supply: 303 million ENA
Ethena is an Ethereum-based synthetic currency protocol that provides independent savings solutions through "internet bonds" pegged to the US dollar. The ENA token serves as a governance token, allowing holders to participate in protocol development decisions.
On January 8, Ethena will unlock over 12.86 million ENA, equivalent to $16.34 million, to support ecosystem development activities.
MOVE
Unlock date: January 9
Unlocked token amount: 50 million MOVE
Current circulating supply: 225 million MOVE
Movement is an innovative blockchain platform that enhances Ethereum's functionality using the Move programming language developed by Meta (formerly Facebook). This technology improves the security, scalability, and compatibility of blockchains.
On January 9, Movement will release 50 million MOVE to drive ecosystem development and support the community.
OP
Unlock date: January 9
Unlocked token amount: 4.47 million OP
Current circulating supply: 1.35 billion OP
Optimism is a Layer-2 scaling solution that can increase transaction speed and reduce costs on Ethereum. The OP token plays a governance role, allowing holders to vote and shape the network's development direction.
On January 9, Optimism will release 4.47 million OP, worth $9.44 million, to the seed fund to promote the project's growth.
APT
Unlock date: January 11
Unlocked token amount: 11.31 million APT
Current circulating supply: 558.49 million APT
Aptos is a Layer 1 blockchain focused on providing a secure and scalable platform for decentralized applications (dApps). The project's performance has been highly praised, but it also faces some criticism regarding its token distribution structure's reliance on venture capital funds.
On January 11, Aptos will unlock 11.31 million APT, worth $113.89 million, to be distributed to the community, core development team, and strategic investors.
IO
Unlock date: January 11
Unlocked token amount: 3.22 million IO
Current circulating supply: 128.83 million IO
Ionet is a decentralized GPU network that provides computing power for artificial intelligence and machine learning applications. By leveraging unused GPUs, Ionet offers an economical and scalable solution for developers.
On January 11, Ionet will unlock 3.22 million IO, worth $12.61 million, accounting for approximately 2.50% of the circulating supply, to support community and ecosystem development.
Additionally, this week will also record the major difficulty open events for the next 7 days in a linear format, including SOL, WLD, TIA, TAO, AVAX, DOGE, SEI, NEAR, DOT, SUI, FIL, ENS, JTO, MOCA, with a total unlocked value of approximately $760 million.
The impact of bull market unlocking on the market is multifaceted, with both positive and negative factors. The specific impact depends on the combined effect of various factors.
Positive Factors
Enhance market liquidity: Bull market unlocking means more tokens entering the market circulation, increasing market liquidity and providing more trading opportunities for investors, which helps to improve the market's activity and price discovery function.
Stimulate market vitality: Increased circulation can stimulate market vitality and attract more capital into the market. This is why many people prefer to buy fully circulating tokens.
Provide buying opportunities: For high-quality tokens, the volatility after unlocking may provide more buying opportunities.
Negative Factors
Short-term selling pressure: When a large number of tokens are unlocked and enter the market circulation, it may increase the market's supply, leading to price declines. This pressure may be more evident when market sentiment is poor.
Affect investor psychology: Unlocking may raise investors' concerns about the future development and trend of the token price, and some investors may choose to sell in advance, exacerbating the decline.
The impact of bull market unlocking needs to be comprehensively considered based on the project's fundamentals, market environment, and the proportion of unlocking, rather than simply assuming that unlocking is a negative factor.
