In May, the crypto market will witness its second significant token unlock of over $3 billion this year, as reported by Token Unlocks data.

Token unlocks involve the gradual release of coins initially held to discourage early investors or team members from rapidly selling their large-volume holdings. This process consistently impacts market conditions by amplifying selling pressure on a digital asset.

Leading the May token unlock are two major players, Aevo and Pyth, each set to release over $1 billion worth of tokens.

Aevo plans to release 827.6 million tokens valued at $1.257 billion on May 15, marking a remarkable 758% increase in its current supply. Additionally, between May 16 and May 24, the Layer-2 DEX roll-up will release 6.13 million AEVO tokens daily into circulation, primarily directed towards the DAO treasury, early private sale investors, and the project team.

Pyth Network, a decentralized oracle service provider built on Solana, aims to more than double its circulating token supply by unlocking 2.13 billion tokens worth approximately $1.25 billion on March 20. This event, Pyth's first release since its launch last November, aims to incentivize ecosystem participants, protocol developers, and early supporters.

Other projects preparing for token releases in May include Avalanche, which will launch 9.54 million AVAX tokens valued at $332 million on May 22, marking the second major token release for the blockchain network this year.

Additionally, DeFi protocol dYdX will unlock 33.33 million tokens, representing 10% of its circulating supply valued at $71 million, on the same day. USDe issuer Ethena will release approximately 4% of its circulating supply, equivalent to 53.6 million ENA tokens.

Memecoin is also preparing to release 5.31 billion MEME tokens into circulation, amounting to $141 million and representing 31.92% of the token’s circulating supply.

Furthermore, several Ethereum layer-2 networks like Arbitrum, Optimism, and Starknet have scheduled unlocks for this month.