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As June approaches, notable token unlock events are set to influence the market. BeInCrypto has identified the top five token unlocks that could potentially impact market dynamics, providing traders and investors with both opportunities and challenges.
According to data from TokenUnlocks, in June 2024, the crypto market will see the release of over $800 million worth of tokens into circulation. This influx of liquidity will potentially create waves across various digital assets.
Anticipated Token Unlock Events in June 2024
Token unlocks are pivotal for the crypto market because they introduce previously unavailable tokens to the public market. This often leads to price volatility. The substantial amount entering the market next month presents both opportunities and challenges for traders and investors alike.
In addition to dYdX, SUI, 1INCH, and Ethena (ENA), other tokens such as Arbitrum (ARB), Aptos (APT), and Starknet (STRK) are making headlines due to their notable unlock amounts.
Arbitrum (ARB)
ARB, the native token of Ethereum layer-2 Arbitrum, will unlock 92.65 million tokens worth approximately $105.62 million on June 16. This unlock represents 3.2% of its circulating supply. The release will be divided as follows:
- Team, Future Team + Advisors: 56.13 million ARB ($63.98 million)
- Investors: 36.52 million ARB ($41.63 million)
Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season
Aptos (APT)
Next on the list is Aptos (APT), which will unlock 11.31 million tokens on June 12. The upcoming unlocked tokens represent 2.59% of its circulating supply, worth approximately $102.69 million. The release will be divided as follows:
- Foundation: 1.33 million APT ($12.11 million)
- Community: 3.21 million APT ($29.15 million)
- Core contributors: 3.96 million APT ($35.94 million)
- Investors: 2.81 million APT ($25.50 million)
Starknet (STRK)
Additionally, Starknet will unlock 64 million tokens on June 15, valued at approximately $78.08 million. This unlock represents 5.61% of STRK’s circulating supply. The release will be divided as follows:
- Early contributors: 33.57 million STRK ($40.95 million)
- Investors: 30.43 million STRK ($37.13 million)
Space ID (ID)
Space ID will also have its token unlocked on June 22. These 78.49 million tokens are worth around $56.20 million. The release will be divided as follows:
- Ecosystem fund: 2.78 million ID ($1.99 million)
- Foundation: 5 million ID ($3.58 million)
- Seed sale: 20 million ID ($14.32 million)
- Strategic sale: 13.33 million ID ($9.55 million)
- Community airdrop: 5.83 million ID ($4.18 million)
- Marketing: 4.88 million ID ($3.49 million)
- Advisors: 11.67 million ID ($8.35 million)
- Team: 15 million ID ($10.47 million)
Since ID’s upcoming unlock will add 18.23% to its circulating supply, investors and traders might watch the unlock closely to see how it affects ID’s price action.
Immutable (IMX)
Lastly, Immutable will unlock its token on June 14. These 25.53 million tokens are worth approximately $56.42 million. The release will be divided as follows:
- Ecosystem development: 15.91 million IMX ($35.17 million)
- Project development: 9.62 million IMX ($21.25 million)
Despite its significant numbers, IMX’s token unlock this month will be distributed to its internal team. Representing only 1.72% of the circulating supply, the effect on IMX’s price action is expected to be minimal.
In addition to these tokens, there would be smaller but significant unlocks, including Altlayer (ALT), Pixels (PIXEL), and ApeCoin (APE). Although token unlocks in June will have relatively smaller numbers than last month, the market watchers expect approximately tokens worth $44 billion to become unlocked throughout 2024. Therefore, crypto analyst Alex Wacy cautioned investors and traders to remain careful and adjust their strategy accordingly.
“According to this calculation, it appears that a significant number of tokens will enter the market this year. If there’s not enough capital coming in, pressure to sell may increase for many individuals. Be prepared for more volatility, a surge in supply, chances for strategic trading, shifts in sentiment, and long-term effects of new tokens flooding the market. Adapt your approach, keep an eye on price fluctuations, and identify optimal selling points to capitalize on potential gains,” Wacy said.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
These unlocks are part of a broader trend of increasing token liquidity, met with both enthusiasm for potential growth and cautious assessment of market impact. For investors, understanding the specifics of each unlock is vital. This includes the number of tokens released, their intended use, and the overall market conditions at the time.
As the market prepares for these and other unlocks, investors should maintain a strategy that accounts for potential increases in token supply and the resultant price movements. Indeed, watching how these tokens integrate into their respective ecosystems will be key.