Crypto Market Faces July Volatility With $442 Million Token Unlocks

In July 2025, the crypto market is set to experience potential volatility due to several significant token unlocks. These unlocks, totaling $442 million, are expected to release a substantial number of tokens into circulation, which could exert downward pressure on prices, particularly for smaller-cap coins where the unlocked share is more substantial.

One of the notable unlocks is AVAIL's token release, which will add 38.23% to its circulating supply, valued at $19.22 million. This unlock is scheduled for July 23 and is part of a broader trend of token releases that include projects like IOTA, SOON, and VENOM. The cumulative impact of these unlocks could lead to increased market volatility, as early investors and project teams may choose to sell their tokens, thereby increasing the supply and potentially driving down prices.

Another significant unlock is scheduled for Arbitrum (ARB) on July 16, 2025. This event will release 92.65 million ARB tokens into circulation, representing 1.87% of the total supply. Such a large influx of tokens could create selling pressure, especially if holders decide to liquidate their positions. The market impact of this unlock will depend on the actions of token holders and the overall market sentiment at the time.

The upcoming week, from June 30 to July 6, 2025, is also set to bring significant volatility to the crypto market. Several major projects are scheduled to unlock tokens, with a total value of over $150 million. This includes unlocks for projects like SoSoValue, Resolv Labs, Venom, GateToken, and others. The cumulative effect of these unlocks could lead to increased market volatility, as the supply of tokens in circulation increases and the potential for selling pressure rises.

The potential for market volatility is further exacerbated by the fact that many of these unlocks represent a significant percentage of the total supply for smaller-cap coins. For example, the unlock for Resolv Labs represents 42.6% of its circulating value, while the unlock for Amnis Finance represents 31% of its market cap. Such large unlocks could have a disproportionate impact on the prices of these coins, as the increased supply could lead to selling pressure and a subsequent drop in prices.

In contrast, unlocks that represent a smaller percentage of the total supply, such as those for Axel and Yield Guild Games, are less likely to have a significant impact on the market. These unlocks represent only 1.3% and 1.7% of their respective supplies, and are therefore less likely to create selling pressure or market volatility.

Overall, the upcoming token unlocks in July 2025 have the potential to create significant market volatility, particularly for smaller-cap coins. The actions of token holders and the overall market sentiment will play a crucial role in determining the impact of these unlocks on the crypto market. Investors and traders should keep these unlocks on their radar and be prepared for potential price movements in the coming weeks.