Introduction
Crypto markets are set to experience a significant wave of token unlocks exceeding $7 billion in January 2025. A token unlock is the process through which tokens become available for sale or use after a vesting period. Linear unlocks gradually release tokens into the market over time, while cliff unlocks release the entire amount all at once. In December 2024, token unlocks totaled over $8 billion, highlighting the growing importance of these events. Traders should closely monitor token unlocks to anticipate supply shocks and potential price movements. According to Tokenomist, January 2025 will kick off the year with $7 billion worth of tokens scheduled for release.
Key Takeaways
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Sui, Worldcoin, and Solana will unlock more than $420 million combined
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Over $8 billion worth of tokens have already been unlocked in December and $7 billion unlocks anticipated in January 2025. Another $800 million worth of tokens will enter markets in the next week.
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January looks set for $7 billion in unlocks, as per the authoritative data.
Read more: Top Projects in the Sui Ecosystem to Watch
Upcoming Linear Token Unlocks
Token Unlocks by Monthly Volume Source: CryptoRank
Knowing about upcoming unlocks helps forecast potential price pressure on the token and allows for more informed investment decisions.
Upcoming Cliff Unlocks
Cliff unlocks release all tokens instantly. This week will see major unlocks that may affect prices.
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Sui (SUI): 64.19 million tokens worth $256 million or 2.19% of supply
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Optimism (OP): 31.34 million tokens worth $55 million or 2.32% of supply
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Zeta (ZETA): 53.89 million tokens worth $42 million or 9.35% of supply
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Kaspa (KAS): 182.23 million tokens worth $20 million or 0.72% of supply
Gradual Release Strategy
Gradual releases called token unlocks aim to control how many tokens hit the market at once. Instead of a huge flood of tokens that could crash the price of these unlocks and also ensure a steady inflow. This approach can help reduce panic selling.
Price Implications of Token Unlocks
Despite these measures data shows unlocks often trigger short-term price declines. The impact can take weeks to appear fully. Traders track unlock calendars to adjust positions anticipating dips and potential rebounds.
Users will Expect Both Cliff Unlocks and Linear Unlocks January 2025
January uses cliff unlocks and linear unlocks. Cliff unlocks release big batches of tokens in one move. Linear unlocks spread tokens out over days or weeks. The first week alone will see about $1B unlocked. Between Jan 13 and Jan 19 the market expects an additional $3.7B in new tokens.
January 2025 Token Unlock Overview
January 2025 brings over $7B in token unlocks. Six projects with large unlocks—Sui (SUI), Circular Protocol (CIRX), Arbitrum (ARB), Optimism (OP), Aptos (APT), and ZetaChain (ZETA)—raise concerns of price volatility. Investors should prepare for potential selling pressure, sudden price drops, and an unpredictable market.
Notable and Upcoming Unlock Projects in January 2025
SUI Token Distribution
On January 1st 2025, the market saw the release of 64.19M SUI tokens valued at $270M. These tokens went to investors, community reserves and the Mysten Labs treasury. This allocation supports growth and rewards early backers. Observers watch SUI closely for any price swings that may result from these unlocks.
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Unlock date: January 7, 2025
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Quantity: 11.31M tokens (4.09% of circulating supply)
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Value: $38.2M
Source: CryptoRank
Read more: Restaking on Solana (SOL): A Comprehensive Guide
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Unlock date: January 9, 2025
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Quantity: 50M tokens (2.22% of circulating supply)
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Value: $47.3M
Source: CryptoRank
Cheelee (CHEEL)
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Unlock date: January 10, 2025
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Quantity: 2.67M tokens (4.7% of circulating supply)
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Value: $21.7M
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Unlock date: 01/12/2025
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Quantity: 11.31M tokens
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Value: $104.2M (2.03% of circulating supply)
Aptos, known for its scalability and security, will distribute tokens to various stakeholders. This release could introduce short-term selling pressure but may also attract buyers looking for lower entry points.
Circular Protocol (CIRX)
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Unlock date: 01/12/2025
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Quantity: 28B tokens
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Value: $102.9M (62.4% of circulating supply)
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Unlock date: 01/16/2025
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Quantity: 92.65M tokens
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Value: $70.9M (2.2% of circulating supply)
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Unlock date: January 19, 2025
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Quantity: 17.22M tokens (28.52% of circulating supply)
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Value: $31.1M
Known for its privacy-centric zkBridge, Polyhedra’s unlock could create selling pressure unless it showcases robust adoption for its zero-knowledge proof technology.
Read more: Top Zero-Knowledge (ZK) Crypto Projects
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Unlock date: January 24, 2025
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Quantity: 24.52M tokens (1.43% of circulating supply)
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Value: $34.6M
Immutable, a leader in NFT and blockchain gaming, will release tokens to strengthen its platform. This relatively small unlock is expected to have minimal market impact.
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Unlock date: January 25, 2025
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Quantity: 240.1M tokens (10.39% of circulating supply)
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Value: $28M
Ronin (RON)
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Unlock date: January 27, 2025
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Quantity: 33.66M tokens (8.99% of circulating supply)
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Value: $63.7M
$7B worth of tokens will be unlocked in January 2025
Data from Tokenomist indicates $7B worth of tokens will be unlocked in January. This amount comprises cliff unlocks and linear unlocks. Cliff unlocks release large sums at once while linear unlocks distribute daily. The first week will see about $1B released. The third week will see $3.7B distributed between Jan. 13 and Jan. 19.
Token Unlock (Source: Tokenomist)
On January 1, 2025, the market observed $64.19M SUI tokens worth $270M allocated to investors, community reserves and the Mysten Labs treasury. ZetaChain unlocked $54M ZETA tokens worth $42M for growth initiatives, advisory roles and liquidity incentives. Other major unlocks in January include Kaspa at $182.23M tokens worth $20M on Jan. 6, Ethena at 12M tokens worth $12.16M on Jan. 8, and Optimism with 31.34M tokens worth 57M on Jan. 9.
Several projects run daily linear unlocks. Solana unlocks about $14M worth of tokens daily. Worldcoin releases $12.4M per day. Celestia unlocks $5.1M each day. Dogecoin releases 4.63M daily. Avalanche releases $4.02M daily. Polkadot distributes 2.94M worth of tokens daily.
Similarly, ZetaChain unlocked 54 million ZETA tokens, valued at $42 million, to fund growth initiatives, advisory roles, and liquidity incentives.
Other significant unlocks this month include:
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Kaspa (KAS): Releasing 182.23 million tokens worth $20 million on Jan. 6.
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Ethena (ENA): Unlocking 12 million tokens worth $12.16 million for ecosystem development by Jan. 8.
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Optimism (OP): Distributing 31.34 million tokens valued at $57 million by Jan. 9.
Linear Unlocks
Linear unlocks, which distribute tokens daily, add a steady stream of new supply throughout the month, led by several high-profile projects.
Token Unlock (Source: Tokenomist)
Key projects in this trend include:
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Solana (SOL): Unloading $14 million worth of tokens daily.
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Worldcoin (WLD): Releasing $12.4 million per day.
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Celestia (TIA): Unlocking $5.1 million daily.
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Dogecoin (DOGE): Releasing $4.63 million daily.
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Avalanche (AVAX): Unlocking $4.02 million per day.
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Polkadot (DOT): Distributing $2.94 million daily.
Advice for Investors
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Monitor Unlock Schedule: Stay updated on token unlock dates to adjust trading strategies.
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Project Analysis: Focus on long-term fundamentals rather than short-term fluctuations.
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Risk Management: Avoid overexposure in tokens facing large unlocks to mitigate financial risk.
Conclusion
January 2025 marks a pivotal month for the crypto market, with $7 billion worth of tokens entering circulation. While token unlocks often result in increased volatility, they also offer strategic entry points for savvy investors. Staying informed and closely tracking market conditions will be essential to navigating this dynamic environment effectively. Token unlocks often trigger short-term volatility. If you plan to invest or build positions consider looking for buying opportunities on KuCoin. KuCoin lists various altcoins such as Sui and provides efficient trading features. As always, remember to do your own research and assess each project’s potential risk before making any moves.
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