Crypto Token Unlocks Projected to Drop 50% in August to $3B Amid Market Adjustments and Regulatory Shifts

The total value of crypto token unlocks in August is projected to decline by approximately 50% compared to July, dropping to $3 billion from $6.3 billion, according to vesting data tracker Tokenomist [1]. This reduction, while significant, does not necessarily signal a broader market slowdown, as highlighted by industry experts. Sui (SUI) and Fasttoken (FTN) are expected to dominate the list of major unlocks, with SUI leading at $167.62 million and FTN following at $91.6 million [1]. Other notable unlocks include Aptos (APT) at $51.5 million, Avalanche (AVAX) at $40.35 million, and Arbitrum (ARB) at $39.24 million [1].

The SUI unlock on August 1 is particularly noteworthy due to the token’s high fully diluted valuation (FDV), despite only 34.5% of its supply currently being unlocked. This dynamic could create sell pressure if early holders offload their tokens, as increased supply often leads to market volatility during unlock events [1]. In contrast, FTN’s unlock may have a muted impact, as 94% of its tokens are already circulating, reducing the potential for price disruption [1]. Smaller unlocks, such as $16 million for Starknet and $29 million for Kaito, could face heightened volatility due to lower market depth, making these tokens more susceptible to price swings [1].

Vincent Kadar, CEO of security token platform Polymath, noted that the 50% drop in unlock value reflects cyclical shifts in market sentiment, liquidity planning, and regulatory developments rather than a long-term decline [1]. He emphasized that projects are adapting to trends like increased regulatory scrutiny and the need to demonstrate utility before expanding token supply. Kadar also highlighted a shift in investor behavior, moving away from “unlock anxiety” to a more nuanced evaluation of tokenomics. Sophisticated investors now prioritize factors such as real-world adoption, governance transparency, and alignment of incentives with long-term value [1].

The August unlocks highlight the ongoing interplay between token supply dynamics and market confidence. While reduced unlock values may alleviate short-term supply concerns, the impact on prices will depend on how effectively projects address adoption, governance, and regulatory readiness. For investors, the focus remains on whether unlocks are accompanied by measurable progress in utility and ecosystem growth, rather than mere token distribution [1].

Sources:

[1] Crypto token unlocks drop in August 2025 (https://cointelegraph.com/news/crypto-token-unlocks-drop-august-2025?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)