Altcoins Brace for Turbulence as $270M in Token Unlocks Unfold This Week

This week, the cryptocurrency market is set to face significant turbulence as $270 million worth of altcoins are unlocked. Major tokens, including Sui (SUI), ImmutableX (IMX), Zetachain (ZETA), Taiko (TAIKO), dYdX (DYDX), and Mode (MODE), are among those expected to be most affected by these large token releases. Traders are advised to approach the market with caution, as these events could lead to sudden and unpredictable price movements.

Major Altcoins Token Unlocks: What to Expect

One of the most anticipated token unlocks this week involves Sui (SUI), with 64.19 million tokens, valued at approximately $51.60 million, released on September 1. This represents 2.47% of SUI’s circulating supply, and the sudden influx of tokens could exert downward pressure on the market. If a significant number of holders decide to liquidate their holdings, SUI’s price may experience a decline.

ImmutableX (IMX) is also scheduled for a significant unlock on September 6, with 32.47 million tokens valued at $47.41 million entering circulation. This release accounts for 2.06% of IMX’s circulating supply. The additional supply may not be immediately met with demand, potentially leading to short-term volatility and a drop in IMX’s market price.

ZETA and TAIKO: High-Risk Altcoins to Watch

Zetachain (ZETA) is another altcoin facing a notable token unlock on September 1. The release will see 53.89 million tokens, worth $26.63 million, entering the market. This unlock represents a substantial 15.71% of ZETA’s circulating supply. The large proportion of tokens being released could lead to significant market shifts, especially if many holders opt to sell their tokens, creating pressure on ZETA’s price.

Taiko (TAIKO) is set to unlock 12 million tokens on September 5, valued at $20.04 million. This release constitutes 19.02% of TAIKO’s circulating supply, making it one of the more impactful unlocks of the week. The market may struggle to absorb the additional supply, potentially leading to a destabilization of TAIKO’s market value.

Other Notable Unlocks and Market Dynamics

dYdX (DYDX) and Mode (MODE) are also expected to experience significant token unlocks that could influence their market performance. On September 1, 8.33 million DYDX tokens, valued at $7.89 million, were unlocked, representing 3.67% of its circulating supply. Although the percentage is lower compared to other tokens, the sudden increase in supply could still lead to price fluctuations for DYDX.

Mode (MODE) faces one of the largest unlocks this week, with 500 million tokens set to be released on September 6. Valued at $6.45 million, this unlock represents a massive 38.46% of MODE’s circulating supply. The sheer volume of tokens entering the market could result in significant selling pressure, making MODE particularly vulnerable to price volatility during this period.

In addition to these major unlocks, several other top altcoins will experience daily linear unlocks that could further contribute to the market’s dynamics. For instance, Solana (SOL) will see daily releases of 66.54K tokens, with a daily value of $9.31 million, while Polkadot (DOT) will have daily unlocks of 441.35K tokens, worth $1.88 million. NEAR Protocol (NEAR) and SEI will also undergo daily token unlocks, potentially influencing overall market prices.