Over $484 million in token unlocks this week: SUI, ENA, OP, SOL, AVAX, and DOGE are in focus

This week, the crypto market braces for heightened volatility as over $484 million worth of tokens are set to be unlocked across major altcoins. According to Wu Blockchain, six altcoins with one-time tokens are expected to unlock more than $5 million each in the next seven days. Historically, token unlocks tend to trigger increased selling pressure, making it a crucial period for traders and investors to monitor closely.

Token unlocks could bring volatility in SUI, ENA, OP, and others

Wu Blockchain reports that six altcoins with one-time token unlock (cliff unlocks) are worth more than $5 million each over the next seven days. The cliff unlock allows a certain number of tokens to be unlocked immediately after a specific vesting period. 

The list includes Sui (SUI), Ethena (ENA), Optimism (OP), Kamino (KNMO), ZetaChain (ZETA) and Neon (NEON). Neon and Kamino are unlocking tokens more than 10% of their circulating supply, while Sui, Optimism, ZetaChain and Ethena are unlocking tokens more than 1%. 

Typically, when a token unlocks accounts for over 1% of the cryptocurrency’s circulating supply, it will likely have a negative impact on the price. Therefore, traders should monitor these six assets for increased volatility this week, specifically Neon and Kamino, as they unlock more than 10%.

Moreover, the large token linear (daily unlock amounts to over $1 million) unlocks this week include Solana (SOL), Worldcoin (WLD), Official Trump (TRUMP), Bittensor (TAO), Dogecoin (DOGE), Celestia (TIA), Avalanche (AVAX), Sui (SUI), Morpho (MORPHO), Ether.fi(ETHFI), Polkadot (DOT), Sei (SEI), Story (IP), and Jito (JTO).

While an increase in a cryptocurrency’s circulating supply is typically bearish, planned unlock schedules may have a less significant impact as the trading community anticipates the unlock and likely positions itself accordingly.

However, traders should remain cautious as the increased supply from token unlocks frequently generates negative sentiment among investors, which can weigh down prices.