Cryptocurrencies Face $1.57 Billion Token Unlocks This Week

Several cryptocurrencies, including the Official Trump memecoin (TRUMP), Solana (SOL), Arbitrum (ARB), SEI, and Starknet (STRK), are scheduled for significant token unlocks between July 14 and July 21. These unlocks could influence market dynamics and investor sentiment for the affected assets.

Token unlock events introduce large volumes of previously locked tokens into the market, which can lead to increased volatility, particularly for assets facing major cliff unlocks. The upcoming unlocks are expected to release over $1.57 billion worth of tokens across various crypto projects.

The most significant unlock is anticipated from the Donald Trump-backed memecoin, TRUMP. Over the next seven days, the memecoin project will release 90 million TRUMP tokens, approximately 45% of its total supply. This translates to roughly $873 million at the current market price, which could potentially impact the price of TRUMP. As of the latest update, the TRUMP price was trading at $9.43, with a 3.08% decline in the last 24 hours. However, TRUMP has seen a 9.28% increase over the past seven days, and its trading volume has surged by over 82% to $50 million. This suggests that TRUMP is consolidating and anticipating a bullish move, which may mitigate the potential price volatility from the upcoming unlock event.

In addition to TRUMP, other notable unlocks include Arbitrum (ARB) with 92.6 million tokens, SEI with 55.56 million tokens, and Starknet (STRK) with 127 million tokens. These unlocks are less severe and may only cause short-term pressure if liquidity holds, as the large volume hits the market when sentiments for these tokens have improved. In the past 24 hours, ARB has rallied 1.2% to $0.4, SEI rose 0.3%, and STRK spiked 0.8%. Other unlocks set to happen this week include Coincoin (CONX) with 2.23 million tokens valued at approximately $145.8 million, and Fasttoken (FTN) with $89.8 million worth of tokens, representing 2.17% of the circulating supply. CLOUD is also up for a notable unlock, with 58% of its entire supply.

Solana is set for a linear unlock, which involves a gradual and consistent release of tokens over a specified period. This approach reduces sudden market flooding and selling pressure. Solana will release 465,770 SOL, valued at about $75.8 million, with approximately $11 million worth of SOL unlocked per day for the next seven days. As of the latest update, Solana’s price was trading at $164.3, representing a 1.32% increase in the last 24 hours. The trading volume surged over 108.63% to $7.08 billion within the same period, indicating increased investor interest and suggesting that the current market demand could match the potential supply from the upcoming unlock.

Overall, the upcoming token unlocks present a mix of challenges and opportunities for the affected cryptocurrencies. While the influx of new tokens could lead to increased volatility, the current market conditions and investor sentiment may help mitigate potential price declines. The linear unlock approach for Solana, in particular, is expected to provide a more stable release of tokens, reducing the risk of sudden market disruptions.