Crypto market braces for $4.7 billion token unlocks this September

The crypto market is set for a whopping $4.7 billion token unlocks in September, with projects including Sui (SUI), Aptos (APT), Arbitrum (ARB) and Ethena (ENA) leading the highest supply injection in the month, according to data from Tokenomist.

Crypto market set for $4.7 billion token unlocks in September

Crypto projects are set to release $4.7 billion worth of locked tokens into circulation in September, according to Tokenomist data on Friday. The total unlocks include $1.2 billion from cliff unlocks and $3.5 billion from linear schedules. The bulk of tokens flows to investors, project teams, and other beneficiaries.

In crypto projects, linear unlocks refer to a gradual release of tokens at regular intervals, such as monthly or yearly. This approach enables tokens to enter circulation in a steady and predictable manner, helping to reduce market impact.

On the other hand, cliff unlocks are events where a project releases a large portion of tokens to investors, community members or advisors, potentially triggering increased volatility. Historically, cliff unlocks often result in price declines if there is no corresponding demand to match the new supply.

Sui, Fasttoken (FTN), Arbitrum, Aptos, and Ethena are among the projects set to unlock millions in vested tokens by September.

Sui is leading the unlocks with a $153 million supply hike next week. The Layer-1 token will inject 44 million SUI, totaling 1.3% of its current supply, into circulation. Tokenomist data shows that the network has released 35.1% of its supply into circulation, with a significant portion remaining vested.

SUI is down over 5% on the day, with weekly losses reaching 11%. The weight of the unlocks could further impact its price if demand doesn't pick up.

Fasttoken (FTN) is set to add $90 million worth of its tokens to circulation, although the impact is limited, as more than 96% of its supply is already in circulation.

Aptos and Arbitrum follow closely with unlocks of $49 million and $48 million scheduled for September. Both tokens are down 4% and 5%, respectively, in the past 24 hours.

Other notable releases include Ethena (ENA) and Optimism (OP), which are set to inject $25 million and $21 million worth of tokens into circulation.

Starknet (STRK) is set for a $16.8 million unlock, while Sei (SEI) will inject $16.49 million into circulation.