Over $400 million worth of tokens will be unlocked between February 3 and February 10.
Major unlocks include XDC ($65.13 million), MOVE ($27.79 million), and KAS ($13.7 million).
Solana leads linear unlocks with 465,770 tokens valued at $88.14 million.
As February has begun with turmoil in the crypto market, investors are now bracing for another market-shifting event — a wave of major token unlocks between February 3 and February 10. According to from Tokenomist, over $400 million worth of tokens are set to be injected into circulation as multiple blockchain projects conclude their vesting periods.
Among the most significant cliff unlocks are XDC (841.18 million tokens valued at $65.13 million), MOVE ($27.79 million), and KAS ($13.7 million). Meanwhile, NEON and BANANA tokens are also scheduled for releases worth $13.03 million and $6.16 million, respectively.
On the linear unlock front, Solana tops the list, with 465,770 tokens valued at $88.14 million being released. Other notable token releases include Worldcoin at $59.19 million and Dogecoin at $22.09 million, alongside smaller but major unlocks for TIA , Avalanche , and ENS . The potential for increased supply is sparking concerns about heightened market volatility.
The timing of these token unlock events, coinciding with a macroeconomic downturn fueled by geopolitical uncertainties, makes the situation even more precarious. It is important to note that the crypto market is set to see another $1.06 billion of token unlocks during the next week.
Crypto Market Sentiment Shifts to Fear
While token unlock often signal project development milestones, the sudden increase in supply typically results in downward price pressure as holders seek liquidity. This influx can disrupt already fragile market dynamics, as evidenced by Ether’s sharp 16% drop in just one hour to $2,368 earlier on February 3.
The broader market continues to bleed following Trump’s tariffs, with global crypto market capitalization by 8.8% to $3.09 trillion. Investor sentiment has taken a nosedive, as reflected by the Crypto Fear & Greed Index dropping to 44, the lowest since October 11.
Bitcoin demonstrated relative resilience during this market storm, falling 6.8% over the past 24 hours to $94,743. by TradingView indicates that the largest cryptocurrency’s dominance rose to 62%. This signals a flight to safety among risk-averse traders shifting from altcoins to Bitcoin, potentially delaying the highly anticipated altcoin rally.
February would be a crucial month for the crypto market, with all eyes on whether the upcoming token releases will mark the beginning of a recovery or deepen the ongoing market decline.