Token unlock involves releasing tokens that were previously blocked under fundraising terms. Projects carefully schedule these releases to avoid market pressure and prevent a drop in token prices. However, factors like lack of liquidity or early investor profit-taking can significantly impact an asset’s dynamics. Here are five major token unlocks to watch next week.
Optimism (OP)
- Unlock date: July 15
- Number of tokens unlocked: 10 million OP
- Current circulating supply: 1.12 billion OP
Optimism is a Layer-2 scaling solution designed to improve the speed and lower the costs of transactions on the Ethereum mainnet. The OP token plays a crucial role in governance, allowing holders to vote on proposals and decisions that shape the network’s development and management.
On July 15, Optimism will increase its circulating supply by 10 million OP tokens. According to TokenUnlocks, the project will use these tokens for retroactive public goods funding program.
This initiative is designed to reward projects that have positively impacted the ecosystem. By providing retroactive grants, it incentivizes developers to contribute to public goods, knowing their efforts might be rewarded later.
Starknet (STRK)
- Unlock date: July 15
- Number of tokens unlocked: 64 million STARK
- Current circulating supply: 1.3 billion STARK
Starknet is developing a ZK-Rollup Layer-2 solution to scale decentralized applications on Ethereum. Following a successful investment round, the team introduced the STRK token, essential for decentralizing the network.
“The STRK Token was born so that STARK-based scaling can happen in a more decentralized way. The token design helps Starknet to be run and managed by the community, and Provisions is a powerful means to achieve this,” said Diego Oliva, CEO of Starknet Foundation.
On July 15, the project will unlock 64 million STRK tokens, distributed to investors and early contributors.
Arbitrum (ARB)
- Unlock date: July 16
- Number of tokens unlocked: 92.6 million ARB
- Current circulating supply: 2.9 billion ARB
Arbitrum, developed by Offchain Labs, is one of the most popular Layer-2 solutions for Ethereum. The mainnet launched in August 2021, with funding from Lightspeed Venture Partners, Polychain Capital, Ribbit Capital, Redpoint Ventures, Pantera Capital, Alameda Research, entrepreneur Mark Cuban, and cryptocurrency exchange Coinbase.
Next week, Arbitrum will unlock over 90 billion ARB, currently valued at approximately $92.59 million. The team, advisors, and investors will receive these tokens.
Axie Infinity (AXS)
- Unlock date: July 16
- Number of tokens unlocked: 2.45 million AXS
- Current circulating supply: 147.8 million AXS
Axie Infinity, created by Sky Mavis, is a leading Play-to-Earn blockchain gamewhere players collect, breed, and battle creatures called “axies.” The game has garnered significant popularity, partly due to its engaging gameplay and the potential for earning rewards. Players can crossbreed axies to create new characters and earn rewards by winning battles and selling axies in the marketplace.
The game utilizes its native AXS token for various purposes, including platform development and governance. On July 16, 2.45 million AXS will be unlocked to distribute staking rewards, further incentivizing player participation.
ApeCoin (APE)
- Unlock date: July 17
- Number of tokens unlocked: 15,6 million APE
- Current circulating supply: 674,6 million APE
ApeCoin is the native token of Yuga Labs’ Ape ecosystem, which includes the popular Bored Ape Yacht Club (BAYC) NFT collection. On July 17, the project will unlock over 15 million tokens and distribute them among the treasury, founders, team, and contributors.
Typically, APE experiences a price drop following large unlocks. Investors and traders should pay attention to this event, as it could seriously impact the token’s dynamics.
Other next-week unlocks include Cyber (CYBER), Render (RNDR), Manta Network (MANTA) and other tokens, with a total value exceeding $170 million.
Although many consider token unlocks bearish, a well-planned schedule can strengthen a project’s long-term viability. Aligned with milestones and development progress, unlocks will motivate team members, boost community engagement, and promote ecosystem growth.
Source: Be(in)Crypto
