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Crypto markets may face renewed volatility as roughly $566 million in previously restricted tokens are set to enter circulation this week, according to blockchain data from DeFiLlama and Tokenomist. With trading volumes down and liquidity thinner across several markets, these clustered token unlocks could increase selling pressure and exacerbate intraday price swings for affected projects.
What are token unlocks and why they matter
Supply increase and price pressure
Token unlocks occur when tokens that were previously locked, vested or restricted become tradable. That inflow increases circulating supply, and if buyer demand doesn’t match the new availability, prices can feel downward pressure. Historically, clustered unlock schedules often coincide with short-term volatility.
Liquidity and market depth
When liquidity is low, even modest sell orders can move prices sharply. Analysts warn that the current environment—characterized by subdued trading activity—may amplify the effect of the $566M unlocks. Market makers and spot liquidity pools will be watched closely to gauge absorption capacity.
Which projects are involved
Data providers point to three prominent projects accounting for the bulk of this week’s unlocks: one releasing contributor allocations despite recent price drops, another opening tokens earmarked for ecosystem development, and a third distributing tokens to team members and early stakeholders. While specific token names vary by data feed, the concentration of releases in a short window is notable.
How traders and investors should prepare
Monitor volumes and order book depth
Traders should closely track on-chain metrics and exchange volumes as the unlock dates arrive. Rising sell pressure typically shows up first in widening spreads and diminishing bid sizes. Monitoring DeFiLlama and Tokenomist alerts can help anticipate flow.
Consider risk management
Portfolio managers may want to adjust position sizing, set tighter stop-losses, or use hedges during the unlock period. Because unlock events don’t always trigger declines—impact depends on buying demand—active risk controls are prudent while market participants assess absorption.
Outlook
Token unlocks do not guarantee negative price moves, but they increase market stress when demand is weak. The coming days will reveal whether buyers step in to soak up the additional supply or if reduced liquidity leads to sharper price adjustments. Traders and crypto investors should prepare for higher intraday volatility and watch key metrics such as trading volumes, order book depth, and on-chain token flows.
Source: crypto
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