The circulating supply of various projects’ tokens is expected to be impacted by a number of significant token unlocks this week.
Millions Tokens Scheduled To Unlock This Week
The circulating supply of various projects’ tokens is expected to be impacted by a number of significant token unlocks this week. In order to minimize unexpected and significant sell-offs by early investors or project members, token unlocks gradually release previously locked coins, which can be linear and cliff unlocks.
AVAX, the native coin of the Avalanche blockchain, is a significant unlock. 9.54 million AVAX tokens, worth $98.7 million, which make up 2.77% of the current supply, will be distributed on August 26. Strategic partners, the Foundation, the team and airdrop participants will each receive a portion of the distribution. AVAX declined 16.07% over the past 7 days, as Bitcoin and other altcoins fell. However, it could have been accelerated due to the upcoming unlock, although the past unlock in May was well-received.
Also on August 26, 8.5 million LDO tokens, the governance token of the Ethereum liquid staking platform, will become unlocked. This release, valued at $13.8 million, accounts for about 0.97% of the whole supply of LDOs. Existing investors who own more than 300 million tokens will receive these tokens. LDO fell 11.88% in the previous week, alongside the wider market sell-off, although it could be partly due to the upcoming unlock.
Blockchain gaming project Yield Guild Games (YGG) also has a significant token unlock. 12.2 million YGG tokens, or 6.6% of the circulating supply, worth $2.7 million, will be made available on August 27. YGG's value experienced a massive 475% rally earlier in August, after a private token sale led by DWF Labs. However, it has declined by over 30% in the previous week.
These upcoming token unlocks are important for their respective ecosystems and existing holders since they could have an impact on investor sentiments and supply dynamics.
