Billions in Crypto Tokens Set to Flood Market as Projects Unlock Vast Supplies

Data from TokenUnlocks reveals that 19 significant cryptocurrency projects intend to release coins worth over $10 million this month. This practice is common among protocols that secure funding through investors, with a portion of the tokens subjected to lock-up periods during which they cannot be sold or liquidated. Among these projects, Pyth Network (PYTH) and Aevo (AEVO) are anticipated to unlock a substantial $3.66 billion worth of coins.

Cryptocurrency Projects Poised to Release Billions of Dollars Worth of Tokens

Data compiled by TokenUnlocks, a blockchain analytics platform, reveals that a significant number of cryptocurrency projects are planning to release substantial amounts of tokens into circulation this month.

Token Unlock Schedules

In the cryptocurrency industry, projects often opt to withhold a portion of their maximum token supply from the open market. This is a common practice among protocols that secure funding from venture capitalists and independent investors.

To manage the distribution of these tokens, projects typically implement a vesting schedule, also known as a lock-up period. During this period, investors and contributors are prohibited from liquidating or selling their tokens on exchanges. However, some protocols allow for staking and yield generation on vested tokens.

Major Crypto Unlocks

Among the 19 projects scheduled to unlock tokens this month, two stand out due to the magnitude of their releases.

Pyth Network (PYTH)

Pyth Network, a provider of oracle services, is set to release approximately 2.13 billion PYTH tokens. This represents a substantial increase in the current circulating supply, which is estimated to be worth $1.2 billion. Despite the sizeable unlock, the tradable PYTH tokens will remain a fraction of the protocol's total supply of nearly 10 billion.

Aevo (AEVO)

Over 827 million AEVO tokens will become available within the next 10 days. This release will increase the protocol's circulating supply by more than sevenfold. Aevo provides options and perpetual trading facilities on its decentralized exchange. While AEVO has a maximum supply of one billion, only 110 million tokens are currently in circulation. The upcoming unlock has a market value exceeding $1.2 billion.

Implications of Token Unlocks

The release of significant amounts of tokens can impact the market dynamics of the respective cryptocurrencies. Investors should carefully consider the potential effects on token price and volatility before making investment decisions. It is important to note that the timing and execution of token unlocks can vary, and projects may adjust their schedules or release strategies based on market conditions.