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 three major token unlocks to watch next week.
Pyth Network (PYTH)
- Unlock date: May 20
- Number of tokens unlocked: 2.13 billion PYTH
- Current circulating supply: 1.5 billion PYTH
Pyth Network is a decentralized oracle that supplies real-time financial market data to blockchain applications. It gathers high-quality pricing information from various sources, including trading firms and exchanges. The project aims to improve the accuracy and reliability of data used in smart contracts and decentralized finance (DeFi) platforms.
The PYTH token has a maximum supply of 10 billion. On May 20, the project will unlock 2.13 billion tokens, which exceeds the current circulating supply. Approximately 800 million PYTH will go to private sale participants and publishers, with the remainder allocated for protocol development and ecosystem growth.
Crypto community members have polarized opinions on how the unlock will affect PYTH price. Some believe the altcoin is headed for a significant collapse, while others are confident that tokenomics design will allow it to hold its ground.
“Pyth unlock worth $910M is on 20th May. 141.67% of current supply is being unlocked. AEVO dumped 25% after the unlock. Most of PYTH holders have staked so they can’t sell their bags. Regardless i am looking for shorting setups,” one crypto trader noted.
Read more: What Is a Blockchain Oracle? An Introductory Guide
Avalanche (AVAX)
- Unlock date: May 22
- Number of tokens unlocked: 9.54 million AVAX
- Current circulating supply: 382.77 million AVAX
Avalanche is a decentralized blockchain platform that delivers high performance and scalability, enabling developers to create and deploy decentralized applications (dApps) and custom blockchain networks. The native token of the Avalanche network is AVAX, used for paying transaction fees, staking, and participating in the platform’s governance.
On May 22, over 9 million AVAX tokens will be unlocked and distributed among strategic partners, the Avalanche Foundation, the team, and airdrop participants.
Read more: 11 Best Avalanche (AVAX) Wallets to Consider in 2024
Space ID (ID)
- Unlock date: May 22
- Number of tokens unlocked: 18.49 million ID
- Current circulating supply: 430.5 million ID
Space ID is a decentralized identity protocol that helps users securely manage their online identities across various blockchain platforms. It enables users to create a single digital identity for use in multiple decentralized applications (dApps). The ID is the utility token of the Space ID ecosystem, designed to incentivize user participation and support the security and growth of the network.
On May 22, the project will add 18 million ID to the circulating supply. According to TokenUnlocks, most of these tokens will go to the Space ID Foundation, the ecosystem fund, and airdrop participants.
Read more: Which Are the Best Altcoins To Invest in May 2024?
Although token unlocks are often considered bearish, a well-planned schedule can enhance a project’s long-term viability. Aligned with milestones and development progress, unlocks will motivate team members, boost community engagement, and promote ecosystem growth.
The post 3 Token Unlocks to Watch Next Week appeared first on BeInCrypto.
