Global #Token Unlocks

October promises to be a pivotal month for several blockchain projects as significant token unlocks are set to take place, potentially impacting market dynamics and investor sentiment

The cryptocurrency market is poised for significant volatility this week, with two major developments on the horizon: the release of the US Consumer Price Index (CPI) data and over $230 million in token unlocks.

Ethereum (ETH) experienced a notable rebound this week, bouncing back from a low of $2,100 to gain 25% since August 2024 lows. While bullish sentiment persists with expectations of surpassing $2,800 and potentially hitting the psychological $3,000 mark, upcoming market events could introduce volatility.

According to Token Unlocks data, Space ID, a platform for Web3 domains and identity services, is poised to release over $55 million worth of ID tokens on June 22, 2024, constituting 18% of its circulating supply.

In recent times, the cryptocurrency market has seen a pattern where tokens are introduced with substantial fully diluted valuations (FDVs) but relatively low initial circulating supplies.

Token unlocks involve the release of previously restricted tokens according to fundraising agreements. Projects meticulously plan these releases to mitigate market pressure and minimize potential declines in token values.