These Altcoins Could Face Volatility as Over $625 Million in Tokens Unlock This Week

·

The cryptocurrency market is bracing for a wave of token unlocks that could trigger significant price movements across several major altcoins. According to data shared by Wu Blockchain, more than $625 million worth of tokens are set to unlock within the next seven days — a development that could introduce volatility, especially for assets experiencing large cliff or linear releases.

Token unlocks are a standard feature in blockchain project roadmaps, designed to gradually release tokens to team members, investors, advisors, and ecosystem contributors. While these events are typically scheduled well in advance, they often lead to downward price pressure due to increased circulating supply and potential sell-offs by early stakeholders.

This week’s unlocks include both cliff unlocks — where a large batch of tokens becomes available all at once — and linear unlocks, where tokens are released gradually over time. Understanding the impact of these events is crucial for traders and long-term investors alike.

Major Altcoins Facing Cliff Unlocks This Week

Wu Blockchain reports that 11 altcoins will undergo cliff unlocks exceeding $5 million each in the coming week. These one-time releases can be particularly impactful because they instantly increase the available supply in the market.

The affected projects include:

Notably, OMNI, KMNO, REZ, and GUNZ are set to unlock more than 10% of their current circulating supply. In crypto markets, any unlock exceeding 1% of circulating supply is considered significant. Releases above 10% can create strong selling pressure, especially if early investors or venture capitalists decide to cash out.

👉 Discover how top traders analyze token unlock data before entering positions.

Historically, such large unlocks have preceded short-term price dips, even if the long-term fundamentals remain strong. Market sentiment often turns cautious ahead of these events, leading to profit-taking and reduced buying momentum.

Linear Token Unlocks: A Steady Supply Influx

In addition to cliff unlocks, several high-profile cryptocurrencies are undergoing substantial linear unlocks with daily release values exceeding $1 million. These include:

Unlike cliff unlocks, linear releases distribute tokens gradually, which can help mitigate sudden market shocks. However, when daily unlock values are high — especially above $1 million — they still contribute to sustained selling pressure over time.

For example, Solana and Avalanche continue to see consistent monthly unlocks for team and foundation wallets, which are factored into long-term models by institutional traders. Still, retail investors may overlook these scheduled events, leading to surprise reactions when prices dip without apparent catalysts.

It’s also worth noting that meme coins like Dogecoin don’t typically have structured vesting schedules, so any mention of DOGE in this context likely refers to ancillary projects or staking rewards rather than core protocol unlocks.

Why Token Unlocks Impact Market Sentiment

Even when fully anticipated, token unlocks can negatively influence investor psychology. The mere expectation of increased supply often leads to preemptive selling, especially from short-term traders aiming to avoid potential downside.

Key reasons why unlocks affect prices include:

However, not all unlocks lead to price drops. Projects with strong fundamentals, active development, and growing user adoption often absorb the additional supply through organic demand. For instance, Solana has weathered multiple large unlocks thanks to its robust ecosystem growth and institutional interest.

👉 Learn how on-chain analytics tools help predict price movements around token unlocks.

How Traders Can Navigate This Week’s Unlock Cycle

Smart risk management is essential during periods of high unlock activity. Here are several strategies traders use to stay ahead:

  1. Monitor unlock calendars: Platforms track upcoming token releases by project, amount, and percentage of circulating supply.
  2. Analyze holder behavior: Watch for unusual wallet movements or exchange inflows preceding unlocks.
  3. Adjust position sizing: Reduce exposure to high-risk assets ahead of major unlocks.
  4. Set stop-loss orders: Protect against unexpected downside volatility.
  5. Focus on post-unlock rebounds: Some tokens experience short-term dips followed by recovery if sentiment improves.

Long-term investors should evaluate whether the unlock aligns with the project’s roadmap and whether funds are being used for ecosystem development rather than speculative distribution.

Frequently Asked Questions (FAQ)

Q: What is a token unlock?
A: A token unlock is when previously restricted tokens become available for trading or transfer, usually after a predefined time period set by the project team.

Q: Why do token unlocks cause price drops?
A: Increased supply can lead to selling pressure, especially if early investors or team members sell their unlocked tokens. This oversupply may outpace demand, driving prices down.

Q: Are all token unlocks bad for investors?
A: Not necessarily. Scheduled unlocks are part of most crypto projects’ economic models. If the project delivers value and adoption grows, the market can absorb the new supply without significant price impact.

Q: How can I check upcoming token unlocks?
A: Several blockchain analytics platforms provide token unlock calendars showing dates, amounts, and percentages of circulating supply affected.

Q: Does Sui (SUI) face multiple unlocks this week?
A: Yes — SUI has both a major cliff unlock and ongoing linear releases scheduled, making it one of the most watched assets this week.

Q: Can positive news offset the impact of a token unlock?
A: Yes. Strong product launches, exchange listings, or partnerships can boost demand enough to counteract selling pressure from unlocks.

👉 Stay ahead with real-time market insights during volatile unlock periods.

Final Thoughts

With over $625 million in tokens set to enter circulation this week, traders should remain vigilant. Assets like OMNI, KMNO, REZ, and GUNZ face outsized risks due to large percentage increases in circulating supply. Meanwhile, established players like SOL, AVAX, and DOT will see steady linear releases that test market resilience.

While token unlocks are predictable events, their psychological impact on markets should not be underestimated. By combining fundamental analysis with careful timing and risk controls, investors can navigate this cycle effectively — turning potential risk into opportunity.

Understanding these dynamics is key to surviving — and thriving — in the fast-moving world of digital assets.