Cardano down as it's set to experience another wave of token unlock alongside other cryptocurrencies

Tokenomist data on Friday highlighted different tokens that will be involved in next week's $257 million cliff unlocks, led by Arbitrum (ARB), Space ID (ID) and Cardano (ADA).

Crypto market set for $257 million unlocks next week

Tokenomics insight platform Tokenomist.ai released its weekly cliff unlock data, which revealed a $257 million supply hike set to enter the market next week. 

Cliff unlocks are events where a project releases tokens to investors, community members, or advisors. The supply increase often results in a decline in the token's price if demand fails to meet up with the new supply.

The tokens involved include Arbitrum (ARB), Space ID (ID), Cardano (ADA), Apecoin (APE), Ethena (ENA), Pixels (PIXEL), Echelon Prime (PRIME) and EigenLayer (EIGEN).

Arbitrum will unlock the highest volume, adding $96 million worth of its tokens to its circulating supply. The Layer-2 token is currently down 3%, stretching its weekly losses above 14%.

Space ID's network token ID will unlock 13% of its current supply next week amid consistent declines in the past week. The token is down over 4% in the past 24 hours, with weekly losses jumping by nearly 20%. 

The impact of the supply hike could lead to further price declines, a trend that tokens often experience after adding to their supply.

Meanwhile, Cardano will increase its supply twice next week, adding $20 million and $21 million worth ADA to its circulation on Monday and Friday, respectiveley.

ADA has already unlocked 85% of its tokens and has consistently added 0.05% of its supply into the market over the past few weeks. The token is currently down over 3% following a recent hack to its Foundation's X account, where the bad actors made several fake posts on its page.

This included a post suggesting that the Foundation received a Wells notice from the Securities & Exchange Commission, with others promoting fake tokens.

However, the Foundation assured its community they had regained control of the account on Friday. 

Other tokens set to see a hike in their supply include APE, ENA, PIXEL and PRIME, adding $25 million, $13 million, $13 million and $11 million worth of their tokens into circulation, respectively.