$3.9B Token Unlock Looms for SUI, Aptos, Arbitrum in February

$3.9B Token Unlock Looms for SUI, Aptos, Arbitrum in February
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Major Token Unlock Set for February

Token unlocks refer to scheduled events in which cryptocurrency projects release previously locked tokens into circulation. These unlocks are strategically planned to minimize market disruption and avoid sharp price declines. According to recent data from Tokenomist, over 60 tokens will experience increases in their circulating supply in February due to these unlock events.

Tokens Set for Unlock in February

These unlock events will release between 0.5% and 0.64% of each cryptocurrency’s circulating supply, equating to a combined $3.9 billion worth of tokens. While these events are expected to generate excitement among investors, there is also caution as the influx of tokens could exert downward pressure on prices in an already volatile market.

Details of the Token Unlock Events

The token unlocks are scheduled to begin on February 1st. Among the notable unlocks:

  • SUI will release approximately 80 million tokens, valued at $288 million. This represents 0.64% of its circulating supply, which may have a minimal impact on the token’s price.
  • The Sandbox (SAND) will unlock over $128 million worth of tokens into the market.
  • Aptos (APT) will unlock $101 million, while Arbitrum (ARB) will release $71 million worth of tokens.
  • Avalanche (AVAX) will see a $64 million worth token unlock.

Additional unlock events will take place across various projects next week, including tokens from XDC, NEON, GGP, AGI, MAVIA, and SPELL, with a combined $79 million worth of tokens set to enter circulation. XDC Network will also unlock $49 million worth of its tokens in the coming week, with more releases expected as February progresses.

SUI, APT, and ARB React to Crypto Market Liquidation

The upcoming token unlocks are expected to coincide with ongoing market volatility. Sui, which operates as a Layer 1 blockchain, has a well-structured token unlock schedule designed to balance the needs of early investors with the long-term health of the ecosystem.

As of the latest update, SUI’s price is trading at $3.97, down by 5.6% in the last 24 hours. The token’s market capitalization currently sits at $12.3 billion. Aptos (APT) and Arbitrum (ARB) have also seen significant price declines, with losses of 9.53% and 4.05%, respectively, over the same period. Aptos’ current price is $7.352.

These price drops occur amidst a broader market downturn, with Bitcoin (BTC) also seeing a 2.67% drop, currently trading at $101,237. Other top altcoins and memecoins, including Ethereum and Dogecoin, have similarly been affected by market liquidations.

Conclusion

February’s token unlocks are set to release billions in value into the market, with significant events for tokens like SUI, Aptos, and Arbitrum. While these unlocks could provide opportunities for investors, the ongoing market volatility and bearish trends suggest that caution is needed. Investors will be closely watching how these events impact token prices in the coming weeks.