I’ve been doing some research on the upcoming token unlocks, and let me tell you, there’s a lot at stake. Over $214 million worth of tokens are set to be released into circulation this week. So, I decided to break down the major ones and see how they might affect the market. Spoiler alert: it’s a mixed bag.
The Big Players
Arbitrum (ARB)
First up is Arbitrum, which will unlock $49.4 million worth of tokens on October 16. This is only 2.56% of its circulating supply. Now, Arbitrum has been smart about this; they stagger their releases to avoid market shocks while still keeping liquidity flowing. But still, you have to wonder how much new supply the market can absorb before it starts affecting price.
EigenLayer (EIGEN)
Next is EigenLayer with an unlock of $43.9 million on October 15, which represents 6% of its total supply. This one’s interesting because it’s a milestone in their development roadmap. New tokens usually cause some price action, but we’ll see how much demand there really is for EIGEN post-unlock.
Axie Infinity (AXS)
Then we have Axie Infinity releasing $43.1 million worth of tokens on October 14. That’s a hefty chunk at 6% of circulating supply as well. Given that AXS is one of the leading blockchain games out there, this unlock could impact both its token price and in-game economy significantly.
Other Notable Unlocks
There are a couple more worth mentioning:
- Starknet (STRK): Unlocking $26 million on October 15.
- Taiko (TAIKO): Unlocking $18.7 million on October 14.
Both are substantial but not as eye-popping as the first three.
The Mechanics Behind It All
So why do these staggered releases matter? For one, they help avoid sudden influxes that could lead to immediate sell-offs and price drops—think flood vs gradual rain.
They also maintain liquidity and stability; by controlling how much new supply enters the market at any given time, these projects can minimize volatility.
And let’s not forget about managing investor behavior; knowing that tokens will be released in a controlled manner tends to calm nerves and reduce panic selling or buying.
Summary: Are We Bullish or Bearish?
In my opinion? It’s hard to say definitively whether these unlocks are bullish or bearish for crypto banking operations overall.
On one hand, if you believe that new supply inevitably leads to lower prices due to increased selling pressure then yes—this week looks rough
But if you think staggered releases can actually contribute positively towards project health by preventing sudden spikes in supply...well
Let me know what you all think!
