Cardano and Solana Face Large Token Unlocks in October – Should SOL and ADA Investors be Concerned?

• Cardano and Solana will both face token unlocks in October, with Solana’s larger release likely to raise more market concerns than Cardano’s smaller one.
• Other major token unlocks, such as those for Aptos and Sui, are scheduled for October, adding to potential volatility across various crypto markets.

In a recent CNF update on Cardano’s notable bullish upswing, we discussed how the Cardano community was confident that Cardano could surpass its current price point by 2024-2025. As development grows, blockchain reporter Colin Wu revealed that Cardano will unlock 37.06 million tokens, valued at $14.34 million, representing only 0.10% of its circulating supply.

In comparison, Solana is preparing for a much larger unlock of 524.03 million tokens, worth $81.56 million, accounting for 0.11% of its supply. While these percentages may seem small, they could still impact market sentiment. A recent tweet by Wu Blockchain states that significant token unlocks in the next 7 days include ENA, SUI, IMX, ZETA, NEON, ADA, DYDX, MAV, and MODE.

According to TokenUnlocks, the single large-amount unlocking in the next 7 days includes ENA SUI IMX ZETA NEON ADA DYDX MAV MODE, etc., and the linear large-amount unlocking in the next 7 days includes SOL WLD TAO AVAX SEI NEAR DOT DOGE BEAM FIL, etc. The total unlocking value… pic.twitter.com/0FsBY2xXpm

— Wu Blockchain (@WuBlockchain) September 30, 2024

The linear unlocking in the next 7 days includes SOL, WLD, TAO, AVAX, SEI, NEAR, DOT, DOGE, BEAM, FIL, and others. The total unlock value exceeds $735 million. For Cardano, the relatively small portion being unlocked is unlikely to lead to significant price volatility.

Solana, on the other hand, has experienced notable unlock events in the past, with a major one occurring in July 2022 when 27.62 million tokens were added, increasing the supply by 7%. These unlocks are part of Solana’s inflationary model, which aims to stabilize its inflation rate by 2027.

However, concerns about transparency persist, particularly regarding tokens held by the Solana Foundation and early investors.

Other Major Token Unlocks in October: Should SOL and ADA Investors be Concerned?

Several other token unlocks are scheduled for early October. Aptos (APT) will release 34.09 million tokens worth $134.42 million, representing 4.54% of its supply. Immutable X (IMX) will unlock 32.47 million tokens valued at $55.86 million, or 2.02% of its supply. Sui (SUI) will unlock 68.79 million tokens worth $120.38 million, constituting 2.57% of its circulating supply.

Avalanche (AVAX) has an upcoming unlock of 700,000 tokens valued at $19.98 million. Additionally, DYDX will release 9.88 million tokens worth $10.70 million, while Mode will unlock a massive 500 million tokens with a lower value of $6.62 million. NEAR Protocol (NEAR) is set to unlock 2.9 million tokens valued at $15.42 million, representing 0.26% of its circulating supply.

At the time of writing, Cardano (ADA) is trading at $0.3846, with a decrease of 0.06% in the past day and a surge of 4.03% in the past week. See the ADA price chart below.