$484M in Token Unlocks Could Trigger Crypto Volatility — What You Need to Know

Key Insights

• Over $484 million in crypto tokens are scheduled to be unlocked in the first week of July.

• Token unlocks can create short-term selling pressure and price dips sometimes.

• SUI has the largest unlock by dollar value, while low-cap tokens like KNMO and NEON face higher-percentage unlocks.

• Major cryptocurrencies like Solana, Worldcoin, TRUMP, TAO and DOGE also have major daily unlocks upcoming.

• investors and traders should approach this week with caution, as the increased supply could lead to choppier price action across the board.

The first week of July is shaping up to be one of the biggest periods of the year, when it comes to token unlocks.

So far, the crypto market is expecting over $484 million worth of cryptocurrencies to be released into circulation within the month. 

This surge in unlock events is nearly double the amount recorded last week, and has raised some issues about incoming volatility in the crypto market.

Here’s a breakdown of what this could mean for investors and why caution may be advised over the next few days.

Why Token Unlocks Matter

Token unlocks are a planned part of most crypto project roadmaps. They typically distribute tokens that were previously locked up for founders, early investors, team members or community rewards. 

However, while these events are expected, they can be a major source of supply shocks, depending on their size.

Unlocks often come before major changes in price dynamics. When a large number of tokens are released, early holders may choose to sell, especially if prices have appreciated.

This selling pressure can create short-term dips for crypto assets, or even major downturns depending on how the market itself reacts.

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This Week’s Big Unlocks SUI, ENA, OP Lead the Pack

The biggest name in this week's unlock schedule is SUI. This cryptocurrency has a massive $125.39 million worth of tokens being released. 

Even though this amount only represents about 1.29% of its total supply, it is still the largest individual unlock in dollar terms. 

Investors are now watching SUI closely, especially as it approaches the resistance zone near $2.84. 

As shown, a failure to break above this level (combined with the unlock pressure) could lead to a sell off.

ENA is another major case. This cryptocurrency has $58.12 million set to enter the market, and the cryptocurrency is already facing difficulty breaking out of the $0.25–$0.26 range.

As expected, this upcoming unlock might worsen its struggle and increase the risk of a dip.

Meanwhile, OP (Optimism) is preparing for an unlock as well, and is currently hovering around $0.53–$0.54. 

Like ENA, OP appears to be in a freefall, especially after losing the $0.875 price level. Investor sentiment could worsen as the unlock date approaches, and caution is advised.

High-Percentage Unlocks Raise Red Flags

While big dollar-value unlocks like SUI are making headlines, the tokens facing high-percentage unlocks may be even riskier. 

For example, KNMO is unlocking $14.01 million in tokens worth about 10.41% of its supply. 

Similarly, NEON is releasing 22.51% of its total supply, even though the dollar value is lower at $5.52 million.

When tokens are released in this magnitude (especially when it comes to low cap tokens), the resulting price action can quickly turn into sharp downward price movements. 

Since smaller tokens often have less liquidity, they are more sensitive to sudden changes in supply and demand.

In addition to the big one-time releases, several large-cap tokens are experiencing daily unlocks. 

For example, Solana is unlocking approximately $70.79 million this week. Interestingly, even though this is only 0.09% of its total supply, it is still the highest daily release.

Worldcoin is unlocking $37.25 million worth of tokens and TRUMP is unlocking $31.52 million.

In addition, TAO is unlocking $17.33 million, while DOGE is unlocking $11.64 million.

Tokens like MORPHO, ETHFI, and SEI are also unlocking this week, each releasing about 2% of their total supply. 

Overall, the story remains: Whether you’re a long-term holder or a short-term trader, it is important to approach this week cautiously, because it is likely that price action across the board will be choppier than usual.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.