The cryptocurrency market is getting a serious jolt from some big token unlock events

One of the most remarkable unlock situations stems from Ethena Labs ($ENA), which is primed to drop a jaw-dropping $718 million worth of tokens — nearly 66% of its total market capitalization.

The cryptocurrency market is getting a serious jolt from some big token unlock events, with certain projects set to unleash a hefty chunk of their circulating supply into the market.

Among the most talked-about scenarios is the upcoming release of $ENA tokens, which could have a significant bearing on the token’s price and overall market sentiment.

What Are Token Unlocks?

Essentially, token unlocks occur when previously locked tokens, typically held by project founders, core team members, and early investors, become transferable and available for trading on exchanges.

Usually, these tokens are released in batches over a predetermined schedule, with the aim of providing liquidity to the market and facilitating broader participation in the project.

Why Are Token Unlocks Important?

These events are crucial because they can have a bearing on the short-term price volatility of the tokens. In some instances, large token unlocks have pushed a project’s price down as early investors and core team members have exited their trades.

However, in other cases, token unlocks have served as a launch moment for projects as project teams and core contributors have used the opportunity to rally the community and drive up demand for the token.

The $ENA Unlock: A Critical Moment for Ethena Labs

Ethena Labs ($ENA) is now in the process of unlocking 65.3% of its market cap, putting it at the forefront of the next wave of token releases. A total of $718 million worth of $ENA tokens are due to be unlocked, making this one of the largest events in recent memory for the project itself. This large-scale rolling out of tokens will impact Ethena's investors and core contributors most of all, as they have been holding their tokens for nearly a year in anticipation of the event.

These token releases might have a bearing on $ENA's price. Right now, $ENA languishes 75% down from its last swing high, which seems to be keeping long-term holders from selling. But we're not so sure what's going on with the insiders and early investors. Will they unload their token haul in the wake of the unlocking event? If they do, we could see the price head south. And if they don't … or if we get a nice little rebound in $ENA … could we see the price run up in the near term?

Even with these obstacles, there is still a chance for the value of $ENA to go back up, especially if demand increases. As the unlock event moves forward and more tokens become available for trading, it will be very important for Ethena Labs to keep market confidence high and not let the price keep declining for a long time. There might be some way to avoid a situation where price momentum going upward after the unlock is also re-established following what might be a somewhat expected price event resuming downward just after the unlock with some new sort of price momentum. If some positive news events should happen—if some nice developments or partnerships should occur in the future—those could help ease the situation somewhat.

Other Token Unlocks to Watch

While the center stage is occupied by the $ENA unlock, several other tokens are also moving close to their own events, which could add to the market fluctuations we are already experiencing. Here are some of the more notable token unlocks coming up and the effects they are expected to have.

Kaspa ($KAS): Kaspa's much smaller (0.63% of its circulating supply) is likely to lead to less immediate compared with $ENA. Still, we have to recognize that KAS is becoming rather popular due to its speed and scalability, features that could well help it avoid nasty sell-offs right after the unlock.

– MOVE ($MOVE): MOVE, with $19.9 million (2.08% of circulating supply) being unlocked, is another token to watch. While the percentage of total supply being unlocked is relatively small, any large transactions could still lead to brief price fluctuations.

Aptos ($APT) is preparing to unlock $61.86 million worth of tokens, amounting to 1.92% of its circulating supply. Aptos has solid institutional backing and innovative technology at its core, which should lend it some stability as its development ecosystem continues its growth after this unlock.

– Strike Protocol ($STRK): The release of $11.98 million worth of $STRK tokens (2.33% of its circulating supply) is also significant, but the potential impact may be limited compared to larger events.

– Sei Network ($SEI): Unlocking of $12.04 million (1.19% of circulating supply) will likely have more moderate effects on its market. Reason: Project appears to be in early stages of adoption.

– Arbitrum ($ARB): Lastly, Arbitrum's event will likely be a key focus for investors, momentous in that it will release tokens totaling $34.87 million (2.10% of