Token Unlocks Worth $755M Set to Shake Crypto Market in July

As July approaches, the vesting periods of over 40 projects is coming to an end, and tokens worth a whopping $755 million are to be released into the market. These token unlocking events have the ability to cause rippling effects in the market, altering pricing and investor sentiment.

Token Vesting Periods

Vesting periods are an important part of the digital asset space which restrict early investors and team members from selling their tokens immediately after launch. By locking down tokens for a specific amount of time, projects ensure price stability during their early stages, seeking sustainable growth. However, when these vesting periods expire, a large number of tokens enter the market, which can have both positive and bad consequences.

According to Token Unlocks, a vesting data tracker, some of the largest crypto assets set to be unlocked in July 2024 are from projects such as AltLayer (ALT), Xai (XAI), Aptos (APT), Arbitrum (ARB), Optimism (OP), Sui (SUI), Immutable (IMX), and Starknet (STRK).

Unlocking Events in July

AltLayer, a decentralized system, is leading the fight, with a stunning 684 million ALT tokens worth around $125 million set to be unlocked on July 25. These tokens will be distributed to the company’s team, investors, advisers, protocol development, treasury, ecosystem, and communities. This important release has the ability to influence ALT’s market price, which is now around $0.18.

Following closely is the gaming-focused project Xai, which plans to release over $93 million worth of tokens on July 9. These tokens, which will be distributed to its team, investors, and ecosystem, will also result in a $2 million transfer to its reserves. XAI’s current token price is $0.46, and the forthcoming unlock could generate significant market activity.

Other Major Unlocks

Aptos is another project worth following. Aptos plans to release an extra 11.31 million APT tokens worth $77 million in July, after unlocking $101 million in May and $102 million in June. The foundation, community, core contributors, and investors receive these tokens. APT’s price has dropped significantly in recent months, from a high of $17.63 on April 1 to $6.99 on June 28, representing a 60% reduction.

Arbitrum is also on the list, with a $75 million token sale slated for July 16 for its staff, advisers, and investors. Earlier this year, Arbitrum released 1.1 billion ARB tokens worth $2.32 billion in March, resulting in a 63% price decline from $2.27 on March 8 to $0.82 now.

Furthermore, projects like as Optimism, Sui, Immutable, and Starknet, also plan to release tokens in July, resulting in significant market activity.