Crypto Markets Brace for $1.57 Billion Token Unlocks Led by TRUMP and SOL

Crypto markets are preparing for a significant event as over $1.57 billion worth of tokens are set to unlock between July 14 and July 21. This wave of token unlocks is led by Official Trump (TRUMP) and Solana (SOL), which are expected to have a substantial impact on price dynamics and investor sentiment.

The TRUMP team is scheduled to release 90 million coins, valued at approximately $865.8 million, which represents over 45% of the circulating supply. The market impact of this unlock will depend on the behavior of investors, particularly whether they choose to sell, hold, or stake their tokens. At the time of this writing, TRUMP has seen a 13.9% increase over the last seven days and a 9.4% increase over two weeks, trading at $9.82 with a circulating market cap nearing $2 billion. The token has rebounded from a recent low of $8.47 and is just below its weekly high of $10.33, indicating strong demand ahead of the unlock.

Other significant one-time releases include $145.8 million worth of Connex (CONX) and 20 million Fasttoken (FTN), valued at just under $90 million. LayerZero is set to sell about 25 million of its native cryptocurrency, ZRO, for $56 million, while Arbitrum is scheduled to unlock $38.8 million worth of ARB at once. Additionally, TRUMP’s sister meme coin, Melania, is expected to offload more than 26 million units for a relatively modest $5.31 million payday.

Solana (SOL) will experience a more gradual linear unlock, with roughly 465,770 SOL, making up less than 0.1% of its total supply, and worth about $75.88 million, to be released throughout the week. The asset is entering this phase on firm footing, boasting a 10.9% gain over the past week to trade near $167.53. This double-figure uptick extends across longer periods, with the world’s sixth-largest cryptocurrency by market cap gaining 11% over a fortnight and 14.5% in the last month, reflecting broader positive sentiment that could cushion the impact of the daily unlocks.

There will be another 98 projects putting their tokens into the market daily for the next seven days. Ones to watch include Worldcoin’s $37.23 million worth of WLD and Bittensor’s release of 50,400 of its TAO cryptocurrency with a price tag of about $20 million. The OG meme crypto, Dogecoin (DOGE), is also set to unlock another 0.06% of its circulating supply, consisting of 94.49 million units valued at just over $19 million.

The upcoming token unlocks are expected to reshape price dynamics and investor sentiment across the board. The market impact will depend on investor behavior, particularly whether they choose to sell, hold, or stake their tokens. The strong demand for TRUMP ahead of the unlock and the positive sentiment surrounding Solana suggest that the market may be able to absorb the influx of tokens without significant volatility. However, the impact of the unlocks on other projects remains to be seen.