Token unlock involves releasing tokens that were previously blocked under fundraising terms. Projects carefully schedule these releases to avoid market pressure and prevent a drop in token prices.
However, factors like lack of liquidity or early investor profit-taking can significantly impact an asset’s dynamics. While numerous token unlocks are expected next week, these four are particularly noteworthy.
Optimism (OP)
- Unlock date: July 31
- Number of tokens unlocked: 31.34 million OP
- Current circulating supply: 1.1 billion OP
Optimism is a Layer-2 scaling solution designed to improve the speed and lower the costs of transactions on the Ethereum mainnet. The OP token plays a crucial role in governance, allowing holders to vote on proposals and decisions that shape the network’s development and management.
On July 31, Optimism will increase its circulating supply by 31.34 million OP. According to TokenUnlocks, the project will distribute these tokens among core contributors and investors.
Read more: Optimism vs. Arbitrum: Ethereum Layer-2 Rollups Compared
Sui (SUI)
- Unlock date: August 1
- Number of tokens unlocked: 64.19 million SUI
- Current circulating supply: 2.5 billion SUI
Sui is a high-performance Layer-1 blockchain that utilizes a Proof-of-Stake consensus to increase network operation and security. The project was developed by Mysten Labs, a company founded in 2021 by former Novi Research employees who created the Diem blockchain and the Move programming language.
The SUI token facilitates governance, enabling token holders to vote on important proposals and shape the platform’s future. The next unlock will happen on August 1, releasing a significant portion of tokens set aside for Series A and B participants, community reserve, and the Mysten Labs treasury.
Read more: A Guide to the 10 Best Sui (SUI) Wallets in 2024
ZetaChain (ZETA)
- Unlock date: August 1
- Number of tokens unlocked: 53.89 million ZETA
- Current circulating supply: 284.81 million ZETA
ZetaChain is a decentralized blockchain platform that enables seamless interoperability across various blockchain networks. One of its main features is cross-chain communication, which allows for the exchange of tokens and data between different blockchains, such as Ethereum and Binance Smart Chain.
On August 1, it will unlock nearly 54 million ZETA tokens. The newly released coins will be allocated across several initiatives, including a user growth pool, an ecosystem growth fund, support for core contributors, advisory roles, and liquidity incentives.
Read more: What Is Blockchain Interoperability?
Wormhole (W)
- Unlock date: August 3
- Number of tokens unlocked: 600 million W
- Current circulating supply: 1.8 billion W
Wormhole serves as a communication bridge between Solana and other networks. This protocol enables projects, platforms, and communities to move tokenized assets seamlessly across different blockchains, leveraging Solana’s high speed and low transaction costs.
On August 3, Wormhole will unlock 600 million tokens, representing 6.02% of the maximum supply. The planned token release has drawn mixed reactions from the crypto community, with some viewing it as a positive development for liquidity, while others express concerns about potential market impact.
“There is nothing abnormal. 18% was unlocked at TGE. The remaining 82% will be unlocked at an average rate of 1.71% of the total supply, per month. And to those who are saying the team is selling, the tokens for core contributors (i.e. team) haven’t even been unlocked yet,” one X user explained.
Read more: Top 7 Projects on Solana With Massive Potential
Other next-week cliff unlocks include Echelon Prime (PRIME), dYdX (DYDX), Manta Network (MANTA), Galxe (GAL), and Ethena (ENA), with a total value exceeding $340 million. Although many consider token unlocks bearish, a well-planned schedule can strengthen a project’s long-term viability. Aligned with milestones and development progress, unlocks will motivate team members, boost community engagement, and promote ecosystem growth.
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