The crypto market is expected to witness a periodic influx of capital next week, as over 308 million dollars in unlocked tokens will be released into the market, led by Aptos (APT), Starknet (STRK), and Cardano (ADA).
Cliff unlock events occur when projects release tokens that have been locked for a certain period. When supply exceeds demand, this often leads to a sharp decline in value. Notable projects in this unlock round include Aptos (APT), Sei (SEI), Starknet (STRK), Cardano (ADA), Ethena (ENA), and Axie Infinity (AXS).
APT is the most notable project in the upcoming unlock event, with 156 million dollars in tokens entering circulation, allocated for the community, private investors, and founders. APT has risen over 2% and recorded a 50% gain in the past 30 days.
Other notable unlock events include STRK, SEI, and ADA, with token values of 47 million dollars, 39 million dollars, and 21 million dollars being released, respectively. STRK rose nearly 4% on Friday, while SEI and ADA saw slight declines.
With the continued increase in circulating supply from projects, data from Keyrock shows the negative impact of unlock events on market prices. After analyzing 16,000 unlock events, Keyrock analysts found that frequent token unlocks often lead to price declines.
Keyrock also points out that the best time to enter the market is about 14 days after the unlock event, when price volatility has eased. Conversely, the best time to exit the market is 30 days before the unlock event, when the market's 'pre-reaction' begins to occur.
