- Avalanche (AVAX) will unlock 1.67M tokens worth $31M on March 21, adding 0.4% to its circulating supply and affecting liquidity.
- Solana (SOL) has a smaller unlock of 12.7K SOL worth $1.63M on April 1, with additional token releases scheduled for May and June.
- Space ID (ID) will release 78.49M tokens worth $19.28M on March 22, making it one of the week’s largest unlock events.
The crypto market see a substantial shift as major token unlocks take place this week. Avalanche (AVAX), Solana (SOL), and several other projects will have locked tokens enter circulation, potentially impacting supply dynamics.
Token unlocks are scheduled events that introduce previously restricted tokens into the market, influencing liquidity, price movements, and investor sentiment. This week, a $31 million worth of AVAX leads, along with substantial releases from other projects.
AVAX $31 Million Unlock
Avalanche will see a major token release, with 1.67 million AVAX tokens unlocking on March 21 at 12:00 UTC. This unlock accounts for 0.4% of AVAX’s circulating supply and could introduce additional liquidity.
Large unlocks often impact short-term price movements, depending on investor reactions and market conditions. Solana also has upcoming unlock events, though its circulating supply is nearly fully vested at 99.86%.
The next SOL unlock occurs on April 1, with 12.7K SOL worth approximately $1.63 million entering circulation. Additional releases will follow in May and June, maintaining a steady schedule of token distribution.
Other Token Unlocks This Week
Aside from AVAX and SOL, several projects have substantial unlocks scheduled. Orbit Bridge Klaytn (OBT) will release 412.3 million tokens, valued at $8.25 million, on March 20 at 00:00 UTC. This unlock represents a 13.3% of OBT’s circulating supply, which may influence market activity.
Plume (PLUME) will have 110.43 million tokens unlocked on March 21 at 00:00 UTC. This release, worth $16.26 million, constitutes 5.52% of its circulating supply. Additionally, Immutable X (IMX) will unlock 27.31 million tokens at 05:00 UTC on the same day, totaling $15.19 million and representing 1.54% of its supply.
Space ID (ID) will close out the week with a major unlock of 78.49 million tokens on March 22 at 20:00 UTC. Valued at $19.28 million, this unlock accounts for 8.74% of the circulating supply, making it one of the larger events of the week.
Impact of Token Unlocks on the Market
Token unlocks play are crucial in shaping market liquidity and decentralization. These releases distribute tokens to investors, developers, and early supporters, increasing accessibility and circulation.
However, they also introduce challenges, such as potential price volatility if a large portion of unlocked tokens is sold immediately. Market sentiment can shift based on the scale of an unlock event.
Large token releases sometimes lead to concerns among traders, leading to speculative moves. Additionally, increasing the circulating supply may introduce inflationary pressure, affecting token valuation if demand does not keep up with the added supply.
