Data from Token Unlocks indicates that December will witness the release of over $750 million worth of vested digital assets from several prominent projects, marking a significant event in the crypto market.
Deciphering the Token Unlocks Data
Token Unlocks, a data tracker, forecasts the unlocking of substantial token reserves by various projects, including dYdX, Optimism, 1inch, and Aptos, in the upcoming month. This unlocked amount is anticipated to inject a significant volume of assets into the markets, potentially impacting market dynamics.
Additionally, among the listed projects, decentralized exchange dYdX stands out as it prepares to unlock the largest token amount. The exchange plans to unlock 150 million tokens earmarked for investors, founders, and employees in December.
Further, the exchange had initially scheduled this release for February but deferred it, and now plans to unlock nearly $500 million based on current market prices on December 1, 2023, at 12:00 am UTC. Moreover, the exchange intends to release subsequent tokens between January 2024 and June 2024.
Changes in Release Dates
dYdX’s decision to extend the lock-up period earlier this year delayed the token release from its initial February timeline. However, the revised unlocking schedule now positions December as the pivotal month for this significant token release, impacting the market dynamics.
Beyond dYdX, other projects are also gearing up to release their locked token allocations. Furthermore, Token Unlocks data highlights Ethereum layer-2 network Optimism, poised to unlock 24 million Optimism (OP) tokens, valued at approximately $41 million, on November 30.
Implications for the Market
The anticipated release of such substantial token volumes from multiple high-profile projects may have significant implications for market liquidity, trading volumes, and price volatility. Lastly, these unlocked tokens entering circulation could also potentially influence investor sentiment, along with market trends as they become available for trading and investment.