$860M tokens to unlock in July
In the coming month, the crypto market braces for approximately 40 cryptocurrency initiatives preparing for token unlocks worth $860 million. Leading the forefront in this wave are Xai, AltLayer, Arbitrum, and Aptos, which are poised to carry out the most significant token distributions.
Significantly, Xai is poised to distribute close to 198 million XAI tokens on July 9, marking 71.5% of its current active supply, with an estimated worth of about $97 million. This allocation is destined for the project’s developers, reserve funds, backers, and ecosystem support.
Aptos is not far behind, with plans to unlock 11.3 million APT tokens on July 12, holding an approximate value of nearly $79 million, intended for the Aptos Foundation along with its community, principal contributors, and sponsors.
Arbitrum is set to unlock 92.6 million ARB tokens on July 16, with a market value of $76 million, to be distributed among the initiative’s development team, financiers, and consultants.
On July 25, AltLayer will unlock 684 million ALT tokens, making up almost 45% of its existing circulating supply and estimated at around $133 million. These tokens are earmarked for diverse project necessities, including protocol betterment and community awards.
Additional anticipated token distributions include Io.net (IO), Starknet (STRK), and Sui (SUI).
Io.net looks to release 7.5 million IO tokens, nearly 8% of its circulating supply, estimated at about $26 million on July 1.
On the same day, Sui will make available 64 million tokens, more than 2.5% of its circulating volume, with a valuation of $56 million.
Furthermore, Starknet plans to unlock 64 million STRK tokens, roughly 5% of its circulating volume and valued at close to $47 million on July 15.
The practice of token releases refers to the allowance of previously restricted tokens to be traded freely. The influx of a substantial number of tokens into the marketplace often raises concerns among investors about potential price drops due to increased selling pressure.
However, there needn't always be a negative connotation with token unlocks. Minor releases might exert a negligible effect. According to a yearly review by Token Unlocks, on average, tokens witness a 34% price appreciation subsequent to their release to private investors.
