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Crypto market faces $860M token unlocks in July

Jun. 27, 2024

Arbitrum distributes $72 million in tokens mid-July.

Xai, ArtLayer, Arbitrum, and Aptos to unlock over $350 million in tokens next month

Around 40 crypto projects are set for token unlocks next month, with a combined value of roughly $860 million hitting the market. According to data from Token Unlocks, Xai, AltLayer, Arbitrum, and Aptos lead the charge with the largest token releases.

Xai is set to release around 198 million XAI tokens on July 9, which represents 71.5% of its circulating supply, valued at approximately $97 million. These tokens are allocated to the project’s team, reserve, investors, and ecosystem.

Following closely, Aptos will unlock 11.3 million APT tokens on July 12, valued at almost $79 million, designated for the Aptos Foundation, its community, core contributors, and investors.

Arbitrum will release 92.6 million ARB tokens on July 16, valued at $76 million, distributed among the project’s team, investors, and advisors.

AltLayer’s token unlock is scheduled for July 25, with 684 million ALT tokens, accounting for nearly 45% of the circulating supply and valued at around $133 million. These tokens are designated for various project needs including protocol development and community incentives.

Other noteworthy token unlocks include Io.net (IO), Starknet (STRK), and Sui (SUI).

Io.net is expected to unlock 7.5 million IO tokens, or almost 8% of its circulating supply, valued at about $26 million on July 1.

Sui will unlock 64 million tokens, over 2.5% of its circulating supply, with a value of $56 million on July 1.

Lastly, Starknet will release 64 million STRK tokens, constituting about 5% of its circulating supply and worth around $47 million on July 15.

What’s next for the price?

Token unlocks refer to the release of a chunk of tokens that were previously restricted from trading. Investors often fear price declines caused by selling pressure when a large amount of tokens enter the market.

However, token unlocks aren’t inherently bad. Small unlocks may have minimal impact. An annual report from Token Unlocks shows that tokens rise 34% on average after being unlocked for private investors.

Overall, the exact impact of token unlocks is often unpredictable. When considering a crypto investment, it’s important to be aware of upcoming token unlocks and their potential impact on the price.

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