Crypto Market Faces $3.3 Billion Token Unlock in June, 32% Drop from May

Crypto assets worth over $3 billion are set to enter circulation in June, marking a 32% decrease from the $4.9 billion released in May. According to crypto vesting tracker Tokenomist, investors and traders will face new supply pressure this month as a result of these unlocks.

June’s token unlocks total $3.3 billion, a significant drop from May’s nearly $5 billion. This change is largely due to projects completing their earlier vesting schedules. Despite the decrease, $3.3 billion is still a substantial amount that could impact token prices, as markets often experience volatility when large sums become tradable.

Of the $3.3 billion in tokens to be unlocked in June, approximately $1.4 billion will be released all at once in what is known as a cliff unlock. This means a lump sum becomes liquid on a specific date. The remaining nearly $2 billion will be gradually released into the market through linear unlocks, which can help mitigate the immediate impact but still adds to the overall supply over time.

Several major projects are scheduled to unlock significant amounts of tokens in June. Metars Genesis (MRS) will release over $190 million worth of tokens on June 21 to support an AI partnership. Since March, MRS has unlocked 10 million tokens each month, totaling nearly $1 billion in circulation so far.

On June 1, SUI will unlock 44 million coins, valued at approximately $160 million. Over $70 million of this amount will go to Series B investors. To date, SUI has released more than 3 billion tokens valued at roughly $12 billion, which is about 33% of its total supply. Additionally, another 5.22 billion tokens, worth nearly $20 billion, remain locked without a set release date.

Other notable projects with vesting dates in June include Fasttoken, which will distribute 20 million tokens worth around $88 million to its founders. LayerZero plans to unlock 25 million tokens valued over $70 million for core contributors and strategic partners. Aptos will release 11.30 million tokens, about $60 million, to its team, backers, and community fund. ZKsync will free over 760 million tokens valued at almost $50 million to investors and staff. Arbitrum is also on the list, adding to the pressure on Layer-2 markets.

Historically, large token unlocks have been associated with price swings. Cliff events, where tokens are released all at once, often trigger rapid sell-offs as holders gain full access to their tokens. Gradual releases can cause prices to decline over several weeks. Traders who operate around these dates should be prepared for increased volatility.

For long-term holders, the dips caused by the influx of new supply could present an opportunity to add to their positions. Keeping track of vesting calendars can help traders time their moves and avoid unexpected market shifts. This proactive approach can be crucial in navigating the potential impacts of these unlocks on the crypto market.