- A staggering total of $57 million worth of tokens are on the cusp of release into the circulating supply this week.
- Major projects like dYdX, Hashflow, and Hop Protocol have significant unlockings scheduled, poised to influence the token market dynamics.
This week is set to mark an intriguing episode in the cryptoverse with an imposing $57 million worth of tokens from various projects gearing up for release into the circulating supply. dYdX, a prominent player in this space, is poised to unlock tokens to the tune of $12 million.
In the realm of blockchain projects, initial token releases often come with certain stipulations. Early investors, pre-seed round participants, team members, and developers are typically prevented from immediately selling their holdings on the open market, which are instead kept locked for a designated vesting period. Following this vesting period, these token holders acquire the freedom to sell their assets in the open market, occasionally leading to a potential price drop due to intensified selling pressure.
TokenUnlocks reports that this week, cliff unlocks will inject over $57.7 million worth of tokens into circulation. In tandem, linear unlocks are set to release cryptocurrency valued at $21.9 million each day. To differentiate, a cliff unlock entails a massive one-day influx of tokens into circulation, while linear unlocks see a consistent daily release of a fixed token supply over a certain period.
Among a host of minor unlockings, dYdX, Hashflow, and Hop Protocol are each poised to inject a minimum of $1 million worth of tokens into the market.
Notably, the dYdX token unlocking is slated to happen imminently, with a cliff unlock event that will introduce $12.8 million worth of tokens, accounting for 0.652% of the total supply, into the circulating pool. This anticipated influx may already be causing market tremors, as the token has seen a dip of about 9.36% in the past 24 hours.
Hashflow (HFT) is set to unlock 0.3% of its total supply, valued at over $1.3 million, later Tuesday, much like dYdX, the HFT token has registered a drop of about 9.16% in the past 24 hours.
Lastly, Hop Protocol (HOP) will unleash 20 million tokens into the circulating supply on Friday, which constitutes 2% of its total supply and is equivalent to roughly $1.4 million at current prices.
