Token Unlocks Could Impact the Crypto Market

The cryptocurrency market is constantly evolving, and one of the most closely watched events is the release of previously locked-up tokens. Token unlocks occur when a project's team or investors release a portion of their tokens at the end of a vesting or lock-up period. 

While these tokens were previously restricted from being traded or transferred, their release into the market can lead to a significant increase in the supply of the cryptocurrency, often resulting in downward price pressure. As a result, token unlocks are typically considered bearish events, with newly released assets creating selling pressure and causing the price to fall. 

This article will explore some of the top upcoming token unlocks. Investors can gain valuable insights and make informed decisions about their cryptocurrency holdings by paying close attention to these events.

Let’s dig in:

1. Tornado: 

Tornado Cash is a decentralized, noncustodial privacy platform created on Ethereum. Using the platform's smart contract solution, users can deposit and withdraw ERC-20 tokens and ETH with different addresses, thus enhancing transaction privacy. 

Tornado Cash ($TORN) has a fully diluted market cap of 9,999,998, with 37.75% of tokens unlocked. The protocol will unlock 1.8% of its supply on April 7 at 03:29 UTC. The price of $TORN is $7.44, up 7.37% in the last 24 hours.

2. Dydx: 

Decentralized exchange (DEX) platform Dydx offers perpetual trading of over 35 cryptocurrencies, including Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE). The exchange has a significant market share and is among the biggest decentralized exchanges.

In fully diluted form, Dydx ($DYDX) has a market cap of $1 billion, with 78.3% tokens unlocked. In addition, 0.7% of the total supply of Tornado Cash ($TORN) will be unlocked on April 11 at 03:00 UTC. $DYDX is trading at $2.61, up 0.4% in 24 hours.

3. Aptos: 

Aptos is a Layer 1 Proof-of-Stake (PoS) blockchain with a new smart contract language, Move. Aptos envisions a blockchain that enables mainstream adoption of Web3 applications and empowers the development of DApps to address real-world user problems.

Aptos ($APT) has a fully diluted market cap of 1 billion, with 84.73% unlocked. Aptos will unlock 0.5% of its supply at 00:00 UTC on April 12. $APT is trading at $11.48, down 2.45% in 24 hours.

4. Euler: 

Euler is a permissionless lending protocol that allows users to earn interest on crypto assets. Among Euler's innovative features are permissionless lending markets, reactive interest rates, protected collateral, MEV-resistant liquidations, and multi-collateral stability pools.

The fully diluted market cap of Euler ($EUL) is 27.182 million, with 40.45% unlocked. There will be an unlock of 0.4% of the total supply of EUL on April 12 at 05:15 UTC. $EUL is trading at $3.72, down 6.75% in 24 hours.

6. Sweatcoin: 

Sweatcoin serves as a mobile fitness app released in 2016. With over 110 million users worldwide, the app rewards users for exercising daily to motivate healthier lifestyles.

Users are rewarded with Sweatcoin, a non-crypto virtual token that serves as a monetary incentive to encourage physical activity. 

Sweatcoin($SWEAT) has a fully diluted market cap of 22.425 billion, with 69.3% unlocked. Approximately 0.6% of the total supply of $ SWEAT will be unlocked on April 13 at 00:00 UTC. $SWEAT is trading at $0.00923, down 4.27% in 24 hours.

Upcoming token unlocks a critical event for the cryptocurrency market, as they can impact the price direction of various digital assets. While historically considered bearish events, the allocation of these unlocked tokens can also significantly impact price direction. 

With the crypto market remaining highly speculative, it's important to stay vigilant and take a long-term view when making investment decisions. As always, staying informed and up-to-date on the latest developments in cryptocurrency is crucial.