According to Tokenomist, tokens worth about $3 billion are planned to be unlocked in the crypto market in August. This is significantly lower than July's figure of $6.3 billion.
Despite relatively modest amounts, unlocks in August could still influence investor sentiment and market volatility in the short term.
Leader of unlocks in August: SOL
An unlock is the release of tokens that were previously frozen under the terms of investment rounds or other funding programs. It is an important part of the lifecycle of blockchain projects. Coins are distributed among developers, early investors, or the community.
Typically, the team carefully develops the tokenomics to avoid triggering sales at various stages of unlocking and collapsing the token price. However, some factors, such as a lack of liquidity or profit-taking by early investors immediately after the unlock, can seriously impact the asset's quotes. Such events often create selling pressure if not supported by real demand. Therefore, unlocks traditionally attract the attention of analysts and crypto investors.
According to Tokenomist, the largest volume of unlocks in August will come from the Solana project — about $367 million. Solana successfully completed July rising to $206. The on-chain value of SOL locked in DeFi pools increased by 14%, and trading volume on DEX rose by 30%. Massive unlocks in August could lower the price of SOL to $115,000 or below.
Other upcoming unlocks
After Solana, Sui (SUI) will become the second largest unlock project in August — nearly $216 million. Such a large-scale unlock could cause significant price fluctuations if there is not enough liquidity or demand.
However, SUI and SOL have recently attracted the attention of institutional investors. Mill City Ventures, a Nasdaq-listed company, allocated $450 million to purchase SUI as a reserve asset. Upexi also intends to spend $500 million to acquire Solana for its altcoin treasury.
"SUI shows potential for a reversal after forming a higher low. The weakness of recent days was caused by fears of a token unlock worth $200 million. But markets are efficient, and usually, the token rises on the day of the unlock, I expect the same here!" said crypto investor Momin on X.
Worldcoin and Trump Coin (TRUMP) combined will unlock about $377 million. The remaining amounts are attributed to tokens with smaller market capitalizations.
"With the approach of another major unlock cycle, the absorption of supply remains an important indicator to watch," notes Tokenomist on X.
However, the total value of unlocks is not too high. Therefore, supply pressure may be mitigated, especially with the support of macro factors or positive news. Nevertheless, investors are advised to closely monitor unlocking schedules and wallet behavior to account for the risk of short-term price changes.
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