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Token Unlocks Impacting the Crypto Market
The upcoming month of May in the crypto market is poised to witness a significant token unlock event, totaling over $3 billion. Token unlocks, a process that involves the gradual release of coins that were initially held to prevent early investors or team members from quickly selling off their large holdings, have historically had a profound impact on market conditions by increasing selling pressure on digital assets.
Aevo and Pyth Lead the Way
Two major players in the crypto space, Aevo and Pyth, are set to play a pivotal role in the May token unlock event, with each project planning to release over $1 billion worth of tokens.
Aevo, for instance, is gearing up to release a staggering 827.6 million tokens valued at $1.257 billion, representing a remarkable 758% surge in its current token supply. This unlock event is scheduled for May 15, with a subsequent daily release of 6.13 million AEVO tokens between May 16 and May 24. These tokens are set to enter the DAO treasury, early private sale investors, and the project team.
On the other hand, Pyth Network, a decentralized oracle service provider built on Solana, plans to more than double its circulating token supply by unlocking 2.13 billion tokens, roughly equivalent to $1.25 billion, on May 20. This marks Pyth’s inaugural token release since its inception last November, aiming to incentivize ecosystem participants, protocol developers, and early supporters.
Other Projects Unlocking Tokens
Aside from Aevo and Pyth, numerous other projects are gearing up for token unlocks in May that are worth noting. For instance, Avalanche, a Layer 1 blockchain, is set to release 9.54 million AVAX tokens valued at $332 million on May 22, marking the network’s second major token release this year.
DeFi protocol dYdX is also preparing to unlock 33.33 million tokens, representing 10% of its circulating supply valued at $71 million currently. Similarly, USDe issuer Ethena will release approximately 4% of its circulating supply, equivalent to 53.6 million ENA tokens, on the same day.
Moreover, meme-cryptocurrency Memecoin is gearing up to release 5.31 billion MEME tokens into circulation, valued at $141 million and representing nearly 32% of the token’s current circulating supply.
In addition to these projects, several Ethereum Layer-2 networks such as Arbitrum, Optimism, and Starknet also have token unlocks scheduled for the month of May, contributing to the overall landscape of token releases in the crypto market.
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