$5 Billion Crypto Unlock Could Shake Markets This October

Nearly $5 billion worth of cryptocurrency will be unlocked on October 24th, with major tokens like Celestia (TIA), EIGEN, and Solana (SOL) among the largest contributors. According to data from Tokenomist, TIA leads this event, releasing $1.11 billion worth of tokens into circulation.

This major unlock has caught the eye of traders, especially those closely watching TIA’s price movements. One trader observed that TIA has been performing well, with a possible target price of $7 over the coming days if the positive trend continues.

However, he also pointed out concerns about high funding rates, possibly influenced by the upcoming unlock, which has caused some traders to hedge their positions by shorting the token.

EIGEN Faces Challenges Following Hack and Sell-Offs

EIGEN is another major token in the upcoming unlock, with $814.27 million in new supply set to be released. However, the project has been struggling recently due to a $6 million hack, which has shaken investor confidence. Additionally, on-chain data indicates that venture capital firms have been selling off their tokens, exacerbating the situation.

The number of EIGEN wallet holders has sharply decreased from 4,888 to 3,500 in a short period. This trend of heavy selling by institutional investors has left many retail traders disillusioned, as they feel the promises of decentralized finance (DeFi) are falling short of expectations.

Solana’s TVL Surpasses $6 Billion Despite Unlock

Solana is preparing to release $342.84 million worth of SOL tokens, but this hasn’t dampened enthusiasm for its growing DeFi ecosystem. The Solana network’s Total Value Locked (TVL) has now surpassed $6 billion, its highest level since January 2022.

This growth has been attributed primarily to the expanding ecosystem of Solana’s DeFi projects rather than just the rising price of SOL itself.

Tokens like WLD, which will release $330.67 million, and CHEEL, with $277.38 million set to be unlocked, will also add substantial liquidity to the crypto market next week. Other smaller tokens, collectively amounting to $2.09 billion in supply, will also be unlocked.