Crypto Token Unlock in November
Vesting periods or token unlocking periods are coming to an end for many projects, creating a massive $2.68 billion of crypto assets that will hit the market this November. As it will unlock substantial amounts, this event is likely to reverberate throughout the digital asset landscape.
As the crypto market has always been volatile, token unlocks are a key factor driving price trends. Vesting schedules are created to prevent early investors and team members from selling tokens en masse, thereby protecting projects against immediate price drops.
But when big unlocks happen, the market usually prepares for a bumpy ride.
Why Token Unlock Matters?
Vesting/Unlocking crypto tokens is one of the strategies employed in the digital asset sector that aims to improve market stabilization extending over long-term project growth.
In other words, it prevents early investors and key contributors from immediately dumping their tokens. Absent these mechanisms, the immediate addition of assets could place significant downward pressure on supply and lead to fast drop offs in token prices.
With unlocks coming in November, knowing the importance of these releases and their implications for the projects individually and the crypto market as a whole is crucial.
Projects to Watch on November
November is poised to be a critical month for several prominent crypto projects, including Memecoin, Aptos, Arbitrum, Avalanche, and Optimism. Let’s break down the specifics of these upcoming token unlocks and analyze their potential impact.
1. Aptos: A $93 Million Giant Unlock
The layer-1 blockchain Aptos will also unlock 11.31 million tokens (currently worth $93 million). This amount will be distributed as follows: $32M to core contributors, $26M to the community, $11M to the foundation and a further 23M that will be allocated for investors.
The APT token, having fallen 54% from its price of $18.14 for the 2024 high, is trading now at $8.24.
Although the significant token unlock may provide short-term selling pressure on APT price, holders distributed across community members, developers, and investors could help to support the asset as these constituencies build out the ecosystem.
2. Optimism: A $44 Million Token Unlock for Core Contributors and Investors
The scaling solution for Ethereum, Optimism is going to drop 31.4 million tokens worth $44 million.
Depending on how these tokens are to be distributed to investors and core contributors, it could mean different things for the market.
With Optimism critical to speeding up Ethereum, their newly unlocked tokens will have to be carefully handled in order to ensure the project continues on a sound basis.
3. Avalanche: A $39 Million Unlock for the Foundation
On October 26, well-known layer-1 protocol Avalanche will release 1.67 million AVAX tokens valued at $39 million.
Most of this release will go to the Avalanche Foundation, who we assume will allocate these funds mostly for development, partnerships and ecosystem growth.
Although AVAX hasn’t dropped as hard, this release is likely to drive it down in the short term, especially if there’s a selling rage.
4. Memecoin: A Token Unlock Worth of $37.8 Million
And the meme-token supporting project will release an airdrop of 3.45 billion tokens or $37.8 million worth, among users.
The token unlock will be divided into two parts: cliff + daily linear.
In the first year of the project alone, contributors will receive more than 10 million MEME tokens every single day, worth close to $117,000. MEME currently trades at a price of $0.010, down by a heavy 81% from its 2024 peak at $0.053.
As dozens of tokens are incoming on the market, it could create lots of downward force on their price. Yet, for the enthusiasts and long-term holders, this might just be a chance to buy more tokens at lower rates.
5. Arbitrum Token Unlock
A Layer-2 scaling solution, Arbitrum’s unlocking amount and valuation are substantial, adding weight to the market’s attention on its distribution.
Arbitrum’s release is expected to see portions allocated to both community and contributor segments, with a possible increase in supply pressure, which traders are watching closely.
What to Expect from the Market?
Token unlock events are always events that raise concerns ahead. These releases are closely followed by investors and traders as either they cause a sell-off or if tokens discover considerable support, occasionally create a buying opportunity.
Although many of these projects have plunged in price this year, the supply of newly-unlocked tokens on the market may nevertheless increase volatility.
However, it must be remembered that token vesting and unlock mechanisms are one of the practical tactics to stabilize crypto projects sustainably in the long run. These numbers represent a cautious approach to avoid an immediate market sell-off and to sustain investor confidence.
Crypto investors and market watchers should brace for more volatility with these releases of tokens being speculative catalysts. It will remain to be seen whether the market can take such a huge number of tokens without massive volatile swings.
November will mark a crucial month with $2.68 billion in digital assets that are ready to move the crypto sector.
