This week, the crypto market will see a wave of large token unlocks, with tokens like JTO, ADA, and ENA having significant unlocking volumes, totaling over 500 million USD! Whether these unlocks can trigger market fluctuations is worth investors' attention.
The specific situation is as follows:
Jito (JTO): the largest wave of unlocking, valued at approximately 518 million USD
On December 8 at 0:00, Jito (JTO) $JTO
A total of 135 million tokens will be unlocked, valued at approximately 518 million USD. The scale of this wave of unlocking is quite astonishing, accounting for 103.03% of the circulating supply.
This means that the number of unlocked tokens has exceeded the current market circulating supply, which may lead to a surge in supply and increased market volatility. Investors need to be prepared for price fluctuations.
Cardano (ADA): valued at approximately 21.31 million USD
On December 6 at 8:00, Cardano (ADA) $ADA
A total of 18.53 million tokens will be unlocked, valued at approximately 21.31 million USD, accounting for 0.05% of the circulating supply.
The unlocking volume of ADA is relatively small, but it is still worth noting the market response for long-term holders of ADA.
Ethena (ENA): a smaller-scale unlocking, valued at approximately 10.61 million USD
On December 4 at 15:00, Ethena (ENA) $ENA
A total of 12.86 million tokens will be unlocked, valued at approximately 10.61 million USD, accounting for 0.45% of the circulating supply. Although the number of unlocked tokens is not very large, it still has a certain impact on the market liquidity and price of ENA, which is worth noting for short-term investors.
Bitget Token (BGB): valued at approximately 8.6 million USD
On December 10 at 8:00, Bitget Token (BGB) will unlock 5.38 million tokens, valued at approximately 8.6 million USD, accounting for 0.38% of the circulating supply. Compared to other projects, BGB's unlocking impact is relatively small, but fluctuations in market sentiment may still lead to short-term price changes.
Newcomer knowledge: token unlocking
Token unlocking refers to a specific cryptocurrency project releasing tokens that were previously locked in a smart contract or held by teams, investors, miners, etc., allowing them to circulate and trade freely in the market.
Why are tokens locked?
Tokens are usually locked at the launch of a project, aiming to prevent the premature release of a large number of tokens that could cause market instability or to reward long-term supporting investors and team members.
The existence of a lock-up period helps stabilize and grow the project, preventing early investors or team members from selling a large number of tokens in the short term, which could affect market prices.
The significance of token unlocking
When tokens are unlocked, they are released from the locked state and enter the market, becoming freely tradable. This means that the supply of tokens in the market increases, which may impact the price of the tokens. Generally, if the unlock volume is large, it may lead to short-term price fluctuations. Investors may make buying or selling decisions based on the timing and quantity of the unlock.
The impact of token unlocking
Increased market supply: when a large number of tokens are unlocked, the number of tokens circulating in the market increases. If these tokens are sold, it may cause a short-term price drop.
Investor sentiment fluctuations: some investors may worry about the supply increase caused by unlocking, leading to price drops, so they might sell their tokens in advance.
Long-term impact: if the tokens that enter the market after unlocking continue to develop and gain more support, their long-term performance may recover or rise.
In short, token unlocking is an important event in the crypto market. Investors need to pay attention to the timing and scale of the unlock to assess the potential impact on prices.