Why is token unlocking important to pay attention to? Is there a risk of a plunge?

What is token unlocking? Why is token unlocking important to care about? What tokens will be unlocked this week?

Why should we pay attention to token unlocking?

Are you unfamiliar with the term “unlocking” the cryptocurrency market? If you are an investor who intends to deeply understand the market, unlocking the possible impact on the price of tokens is an event that you must pay close attention to.

What is token unlocking? When each project issues native tokens, they are usually allocated to developers, early investors, etc. in proportion. This is the token distribution model. In order to avoid the tokens encountering huge selling pressure when the project is launched, many projects will set up A "lock-up period" is set to lock the tokens held by relevant persons for a period of time so that they cannot be traded immediately. Then at a specific point in time, these tokens will be partially unlocked, allowing holders to trade freely.

This is a price protection mechanism for the project, but for investors, a large number of token unlocks may put pressure on currency prices. For example, at the end of last year (2023), $DYDX was unlocked The company bought tokens worth approximately US$485 million, causing its price to plummet nearly 5% in a single day, and the decline continued for several days.

After understanding the possible impact of unlocking, it is inevitable to introduce a useful tool-"Token Unlocks". This is a practical data providing website where you can see the upcoming unlocking of various tokens. Schedule, circulation volume, and unlock volume.

So let’s take a look at which tokens will be unlocked this week!

Moonbeam ($GLMR)

• Total market cap: $394 million
• Unlocked time: 8:00 am on April 11th
• Unlocked Number of tokens: 3.04 million, worth approximately US$1.35 million, accounting for 0.36% of the circulating supply

1inch ($1INCH)

• Total market value: US$645 million
• Unlocking time: 8:00 am on April 11th
• Amount of unlocked tokens: 214,100, worth approximately US$117,500, accounting for 0.02% of the circulating supply

Euler ($EUL)

• Total market value: 101 million US dollars
• Unlocking time: 21:27 pm on April 11
• Unlocked token amount: 76,700 pieces, worth approximately US$432,700, accounting for 0.41% of the circulating supply

Aptos ($APT)

• Total market value: US$5.395 billion
• Unlocking time: April 12, 15:59 pm
• Amount of unlocked tokens: 24.84 million, worth approximately US$331 million, accounting for 6.24% of the circulating supply

Starknet ( $STRK)

• Total market value: 1.409 billion US dollars
• Unlocking time: 8:00 am on April 15th
• Token amount unlocked: 64 million, Valued at approximately US$125 million, accounting for 8.79% of the circulating supply

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