Emily Walker
A recent study predicts a significant release of cryptocurrency tokens amounting to approximately $7.2 billion in January, which may influence the broader cryptocurrency market.
This unlocking event is considered substantial by analysts, who believe it could create both opportunities and challenges for investors in the cryptocurrency space.
Token Unlocking Insights
CryptoRank has reported that January may witness the unlocking of crypto tokens valued at $7.2 billion, prompting attention from those within the digital asset industry regarding its potential implications.
In a recent X post, the research platform highlighted ten major crypto projects poised for significant token releases this month, including Aptos, Circular Protocol, and Arbitrum.
Market analysts indicate that the scale of these token unlockings could evoke notable reactions in the cryptocurrency market, suggesting that January might be tumultuous in light of these developments.
Notable tokens like Aptos and Arbitrum are aiming to leave a significant impact, with expectations that such events may lead to either new opportunities or bearish trends in the market.
$7.2 Billion Worth of Tokens To Be Unlocked in January
Some notable tokens scheduled for unlocking this January include: $APT $111.41M, $CIRX $108.35M, $ARB $86.42M, and more.
— CryptoRank.io (@CryptoRank_io) January 6, 2025
Leading Crypto Tokens
As per CryptoRank, Aptos is set to unlock approximately $111 million worth of tokens, with this release expected on January 12.
Currently, Aptos trades at $10.42, boasting a market cap of $5.8 billion.
Following Aptos, Circular Protocol will reportedly unlock tokens worth $108 million, with 28 billion CIRX tokens entering circulation on the same date.
Arbitrum takes the third position with an expected release of $86 million in tokens.
Potential Market Effects
According to the financial platform OneSafe, unlocking tokens involves releasing previously locked tokens into the market.
These tokens are generally retained by project teams, early investors, or allocated for purposes such as development funding and marketing. Their introduction to the market can result in increased supply and potential market disruption.
Moreover, crypto firm Keyrock has warned of the adverse market reactions that may arise from token unlockings, based on an analysis of 16,000 unlocked tokens.
The firm found that negative consequences were often tied to various factors including the nature of the recipients, size of the releases, and market timing, even when pre-emptive measures were implemented.
Research indicates that substantial token unlockings can lead to significant price drops and heightened volatility, with declines averaging around 2.4 times.
Featured image from Certo Software, chart from TradingView