• Crypto & Funx
• 11 Oct, 2024

November will see $2.6 billion worth of crypto tokens unlocked from major projects, including Arbitrum, Optimism, and Avalanche.

With both cliff and linear releases scheduled, crypto projects are gradually freeing up tokens to early investors and contributors.

timism, and Avalanche prepare to release their locked assets in November. These releases mark the end of each project’s vesting period, potentially affecting the broader market dynamics.

According to from Tokenomist (formerly Token Unlocks), November’s token unlock calendar will span both layer-1 and layer-2 blockchains, platforms, and meme projects, with each releasing its tokens at different intervals.

Major Projects Releasing Tokens in November

This month’s token unlocks include both “cliff” releases, where the digital assets are unlocked all at once, and “linear” releases, where tokens are gradually unlocked over time. Out of the $2.6 billion, approximately $900 million will be released through cliff unlocks, while around $1.7 billion will unlock gradually. Notably, a memecoin project like Memecoin (MEME) will use both methods for its unlocks.

The project is scheduled to release 3.45 billion of its native token, worth approximately $37.8 million, back to the market this November. The digital assets have been allocated to reward users via airdrop.

Following the initial release, an additional 10 million MEME tokens will be released daily, using the linear method to distribute tokens to contributors. Based on MEME’s current price of $0.010, this daily release equates to around $117,000 in added supply daily.

In addition to Memecoin, Layer-1 blockchain Aptos will unlock 11.31 million APT tokens worth an estimated $93 million. According to data from Tokenomist, the digital assets will be shared among the project’s core contributors ($32 million), the community ($26 million), the foundation ($11 million), and investors ($23 million).

More Token Unlock Events

As for Avalanche (AVAX), November’s token unlock calendar shows the project will release 1.67 million AVAX tokens valued at about $39 million. The tokens will be fully allocated to its foundation. As a prominent layer-1 blockchain, Avalanche’s foundation is expected to leverage these tokens to support network growth and expansion initiatives.

However, with the release, some selling pressure is anticipated, particularly from those looking to capitalize on the token’s current price.

Outside the layer-1 blockchains, projects like Optimism (OP), an Ethereum-based scaling solution, plan to unlock 31.4 million OP tokens worth $44 million. These tokens are allocated primarily to investors and core contributors.

Arbitrum (ARB), another Ethereum layer-2 network, will release 92.65 million ARB tokens worth roughly $45 million. This batch is designated for the project’s team, advisers, and investors.

Meanwhile, since its massive unlock in March, where it released over a billion ARB tokens worth $2.32 billion, Arbitrum’s token price has been on a downward trend. The digital asset is currently trading at around $0.48, down from an all-time high of $2.39 in January.

Potential Impacts on the Crypto Market

With $2.6 billion worth of different digital assets entering the market this November, the potential impact on token prices, investor sentiment, and market liquidity is substantial. Historically, large token unlocks can increase selling pressure as early backers and contributors cash in on their holdings, especially if market conditions are volatile.

While the releases may add liquidity to the market, they can also lead to price volatility, especially if the market lacks enough demand to absorb the new supply. Analysts suggest that market participants exercise caution, as the coming weeks may see fluctuations across these projects, potentially influencing investor strategies and broader market trends.