In the first week of October, the cryptocurrency market is set to see the release of over $735 million worth of crypto, as indicated by research from Token Unlocks.
This significant unlock is part of a broader release of approximately $3.46 billion scheduled for October. Primary assets impacted by this release include Celestia, Worldcoin, and Solana.
Specifically, Celestia is set to unlock tokens valued at $1.12 billion, while Worldcoin will release $336.31 million. Additionally, Solana will unlock $360.80 million, with the remaining $1.65 billion being distributed among various projects.
The practice of token unlocking is essential as it allows cryptocurrencies to be gradually introduced into circulation, preventing sudden drops in value from mass sell-offs by early investors and team members. This unlocking process can significantly impact market dynamics by increasing selling pressures on certain assets.
First Week Token Unlock Overview
During the first week of October, a range of tokens will undergo distinct unlocking mechanisms, including both cliff and linear unlocks:
Understanding Cliff and Linear Unlocks
Cliff unlocks refer to a single, substantial release of tokens, whereas linear unlocks involve a gradual distribution over a specified period.
Key Cliff Unlocks
In October’s initial week, nine tokens will experience cliff unlocks, which include:
- Ethena: 428 million tokens (~$171 million)
- SUI: 64.19 million tokens (~$120 million)
- Immutable: $55 million in tokens
- ZetaChain: $37 million in tokens
- Other notable projects: Cardano, DYDX, Maverick Protocol, and Mode
Linear Unlocks Initiated
During this period, several projects including Solana, Worldcoin, Bittensor, and Avalanche will initiate linear unlocks:
- Solana: 524,000 tokens (~$81 million)
- Worldcoin: 37 million tokens (~$73 million)
- Bittensor: 72,000 tokens (~$41 million)
- Other projects: Avalanche, SEI, NEAR, Polkadot, Dogecoin, BEAM, and Filecoin
Considerations for Investors
Awareness of upcoming token unlocks is crucial for investors as these events can influence price volatility and market conditions considerably.
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