• Crypto tokens worth upwards of $320 million are set to unlock in August. 
  • Sandbox, Worldcoin, Avalanche, Optimism, and Injective token unlocks are lined up in the second half of August. 
  • Altcoin season ended in July, and token unlocks will likely delay a comeback.

Crypto token unlocks typically increase selling pressure on the assets depending on the volume of tokens unlocked and their inflow to crypto exchanges. Sandbox (SAND), Worldcoin (WLD), Avalanche (AVAX), Optimism (OP) and Injective (INJ) have token unlocks lined up in the second half of August.

A return of the altcoin season looks unlikely, with upwards of $320 million worth of tokens being unlocked in August. 

Also read: Elon Musk confirms X will “never launch” a crypto token, DOGE community bullish on token’s likely adoption

Crypto token unlocks lined up for August; what to expect

SAND tokens worth $133.14 million, representing 16.16% of the circulating supply, are lined up for unlock on August 14. This means a significant volume of the token’s supply is in circulation, and the unlocked tokens will be distributed to the project’s team, advisors and investors. Since these classes of investors are most likely to sell their holdings, SAND will likely suffer an increase in selling pressure. 

The SAND price is close to its 2023 lows, so the unlock event is likely priced in. SAND is trading at $0.3983 on Binance. 

WLD, a token of the recently launched Worldcoin project, is set to unlock $7.26 million worth of WLD daily. These unlocked tokens are distributed to the community and governed by the team. Market makers control the majority of WLD’s circulating supply. The token is currently trading at $2.155, after a steep decline from its all-time high at $5.278. 

AVAX, 2.76% of Avalanche’s token circulating supply, is entering the market, and unlocked tokens will be distributed to the team and the project’s strategic partners. The previous two Avalanche token unlocks have ushered in decline in AVAX price. The pattern can be expected to repeat.

OP and INJ tokens worth 3.37% and 3.41% of their respective circulating supply are set to unlock in August. The unlocked tokens are expected to enter circulation since they will likely be distributed to investors, core contributors and developers.

Bitcoin, altcoins, stablecoins FAQs

What is Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any person, group, or entity, eliminating the need for third-party participation during financial transactions.

What are altcoins?

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version.

What are stablecoins?

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

What is Bitcoin Dominance?

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.


Like this article? Help us with some feedback by answering this survey:



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

XRP struggles to make comeback above $0.50 as Ripple CEO will face trial

XRP struggles to make comeback above $0.50 as Ripple CEO will face trial

XRP remains range-bound under the $0.50 resistance on Friday after news that Ripple CEO Brad Garlinghouse will have to face a trial in California regarding some statements he made in 2017. 

More Ripple News

Bitcoin Weekly Forecast: Is BTC out of the woods?

Bitcoin Weekly Forecast: Is BTC out of the woods?

Bitcoin appears poised for a slight decline this week, influenced by factors such as the German Government's deposit of over 1,700 BTC in exchanges, decreasing outflows in US spot ETFs, and on-chain data indicating no signs of BTC DeFi liquidation.

More Bitcoin News

1Inch looks poised for downward correction

1Inch looks poised for downward correction

1inch price moves lower by 3% on Friday after being rejected by the 200-day Exponential Moving Average on Thursday. On-chain data shows a decline in Development Activity, signaling negative sentiment among 1INCH investors. 

More Cryptocurrencies News

LayerZero ZRO token tumbles 24% in 24 hours, hit by airdrop-related controversy

LayerZero ZRO token tumbles 24% in 24 hours, hit by airdrop-related controversy

LayerZero’s ZRO token airdrop went live on Thursday, with a claiming mechanism called Proof of Donation. The team requires 10 cents in USDC, USDT or Ether per ZRO token with the aim to weed out manipulative Sybil entities. 

More Cryptocurrencies News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Fed keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis

BTC

ETH

XRP