Token unlock involves releasing tokens that were previously blocked under fundraising terms. Projects carefully schedule these releases to avoid market pressure and prevent a drop in token prices.
However, factors like lack of liquidity or early investor profit-taking can significantly impact an asset’s dynamics. Here are five major token unlocks to watch next week.
Space ID (ID)
- Unlock date: July 22
- Number of tokens unlocked: 18.49 million ID
- Current circulating supply: 430.5 million ID
Space ID is a universal decentralized identity protocol that connects people, assets, and dApps across various blockchains. It allows users to use a single domain name to represent their identity across different applications and networks.
On July 22, the project will unlock over 18 million ID tokens and allocate them between the Space ID Foundation, ecosystem fund, airdrop participants and marketing purposes.
Read more: Decentralized Identity and the Future of Web3: What To Know
AltLayer (ALT)
- Unlock date: July 25
- Number of tokens unlocked: 684.21 million ALT
- Current circulating supply: 1.62 billion ALT
AltLayer is a decentralized protocol that increases blockchain scalability through the concept of Restaked Rollups. It integrates rollups from multiple stacks, such as OP Stack and Arbitrum Orbit, enhancing their security , decentralization, and interoperability by leveraging a restaking mechanism .
On July 25, AltLayer will release nearly 700 million ALT tokens, representing 42% of the current circulating supply. These tokens are designated for the treasury, investors, team, advisors, community members and protocol development.
ALT’s unlocks constitutes 84.5% of all cliff unlocks for the next seven days. Given the relatively small circulating supply of ALT compared to its total supply, this substantial token unlock could negatively impact the price.
“The type of unlock isn’t the only factor to consider. Another crucial aspect is the percentage of the total supply already available. When this percentage is very small, market cap dilution can be significant,” Vincent Maliepaard, Marketing Director at IntoTheBlock, told BeInCrypto.
Read more: Ethereum Restaking: What Is It And How Does It Work?
Yield Guild Games (YGG)
- Unlock date: July 27
- Number of tokens unlocked: 14.08 million YGG
- Current circulating supply: 376.25 million YGG
Yield Guild Games (YGG) is a gaming community that operates on a play-to-earn model . It brings together gamers worldwide, enabling them to earn cryptocurrency rewards by participating in various blockchain games. YGG invests in NFT assets , such as in-game items and virtual land, making these available for guild members to borrow and use in their gaming endeavors.
In a few days, YGG will unlock a significant portion of its tokens. These tokens will be distributed among the community, founders, investors, and the treasury, further supporting the guild’s growth and ecosystem development.
Read more: Top 6 Crypto Gaming Coins To Buy in 2024
SingularityNET (AGIX)
- Unlock date: July 28
- Number of tokens unlocked: 8.45 million AGIX
- Current circulating supply: 639.66 million AGIX
SingularityNET is a decentralized blockchain platform designed to develop and host AI applications. The platform’s native token, AGIX, is essential for transactions, governance, and rewarding node operators who maintain and develop the network. SingularityNET also supports cross-chain functionality, enabling the AGIX token to operate on both the Cardano and Ethereum networks.
On July 28, a significant event for the AGIX token holders will occur: the distribution of unlocked tokens to participants in the AGIX-ADA rewards program. This initiative aims to incentivize and reward community engagement and contributions to the platform’s development and expansion.
Read more: How To Invest in Artificial Intelligence (AI) Cryptocurrencies?
Ethena (ENA)
- Unlock date: July 28
- Number of tokens unlocked: 14.89 million ENA
- Current circulating supply: 1.7 billion ENA
Ethena is a synthetic currency protocol built on Ethereum. It provides a native cryptocurrency solution independent of traditional banking, and also offers global users a dollar-denominated savings instrument called the ‘Internet Bond.’
The ENA token enables holders to vote on governance proposals. On July 28, the project will unlock almost 15 million ENA dedicated to ecosystem development.
Read more: What Is Ethena Protocol and its USDe Synthetic Dollar?
Other next-week cliff unlocks include Galxe (GAL), Acala (ACA), and Forta (FORT), with a total value exceeding $140 million. Although many consider token unlocks bearish, a well-planned schedule can strengthen a project’s long-term viability. Aligned with milestones and development progress, unlocks will motivate team members, boost community engagement, and promote ecosystem growth.
