Next week, the cryptocurrency market will witness significant changes as four altcoins undergo token unlocks. Token unlocks can affect a token’s market liquidity by increasing the supply available for buying and selling, potentially causing price shifts and challenges in executing large transactions.

Upcoming Token Unlocks in Altcoin Projects

When previously locked tokens are released, it can cause price volatility as investors respond to the influx of new tokens. The Pixels ecosystem, for instance, will release 54.37 million PIXEL tokens starting Sunday, May 19. This release, accounting for 7.05% of the circulating supply and valued at approximately $19.02 million, may lead to significant market reactions.

PYTH will see the largest unlock in this period, with 2.13 billion PYTH tokens worth $906.09 million becoming available on Monday, May 20. This amount is 141.67% of the current circulating supply, potentially causing substantial market shifts.

On Wednesday, May 22, the Avalanche network will unlock 9.54 million AVAX tokens, valued at $329 million and representing 2.49% of the circulating supply. The same day, Space ID will release 18.49 million ID tokens worth $13.21 million, which is 4.29% of its circulating supply.

Token Unlocks This Weekend

This weekend, several token unlocks are worth watching. On Saturday, May 18, the Manta Network will release 6.67 million MANTA tokens, representing 2.66% of the circulating supply and valued at $10.40 million. Additionally, Oasis Network will release 171 million ROSE tokens, valued at $14.82 million and representing 2.54% of the circulating supply.

Conclusion

While token unlocks can sometimes lead to price drops, well-planned unlock programs can support the long-term growth and sustainability of cryptocurrency projects. When aligned with project milestones and development progress, these unlocks can incentivize team members, boost community engagement, and foster ecosystem development.