$2.6B Worth Token Unlock Set to Shake Crypto Market in January
Over $2.6 billion worth of tokens will be unlocked between January 13 and January 19.
Ondo Finance leads with a $2.42 billion unlock of 1.94 billion ONDO tokens scheduled for January 18.
This series of token unlocks is the largest expected until mid-March.
As 2025 kicks off, the cryptocurrency market is bracing for a wave of major token unlock events, set to over $2.6 billion worth of tokens into circulation between January 13 and January 19. These unlocks mark the end of vesting periods for several blockchain projects, potentially reshaping market dynamics.
Leading the pack, Ondo Finance will release 1.94 billion ONDO tokens valued at $2.42 billion on January 18, according to data from TokenUnlocks. With ONDO’s circulating supply currently at 1.38 billion and a market capitalization of $1.8 billion, this release could significantly change the token’s supply-demand equilibrium.
Other notable include 2.2% of Arbitrum’s circulating supply, valued at $69.32 million, on January 16. The same day will see Starknet releasing $27.55 million worth of STRK tokens , SEI unlocking $21.06 million in tokens, and Ethena’s ENA contributing $11.98 million to the market.
By January 17, Apecoin’s APE and Echelon Prime’s PRIME will unlock $17.32 million and $10.07 million worth of tokens, respectively. Additional smaller releases include $8.28 million CLOUD, $7.68 million PIXEL , and $4.16 million EIGEN tokens .
This wave of unlocks in the next week is poised to be the largest until mid-March, setting the stage for potential volatility in the affected tokens and beyond.
Market Impact of Token Unlock Event
Token unlock events often create both opportunities and challenges. The influx of large quantities of tokens leads to price volatility and usually exerts downward pressure on their prices. This is because the token holders potentially sell to secure profits or minimize losses. Beyond individual tokens, the broader cryptocurrency market may also feel the ripple effects of these events.
For tokens with strong fundamentals and community backing, any short-term dip might present a buying opportunity for long-term investors. For now, the crypto Fear and Greed Index at 50, signaling a neutral sentiment among investors.
Will Trump’s Inauguration Ignite an Altcoin Rally?
The upcoming inauguration of on January 20 has sparked speculation about a potential altcoin season in 2025. Known for his crypto-friendly stance, Trump’s return to office is fueling hopes for policies that could foster growth in the digital asset sector.
The global crypto market currently stands at $3.3 trillion, up 1% in the past 24 hours, per data. As Bitcoin has faced selling pressure following its mid-December rally, altcoins have also dipped, positioning themselves for a rebound.