Token unlocks are changing the DeFi space by releasing tokens into circulation, often causing significant price changes. With over $568 million worth of assets ready to unlock before October 6, the market could become more volatile.
The impact of these unlocks depends on current market conditions and investor sentiment, making this a key period for traders and long-term investors as DeFi projects adapt to their new circulating supplies.
A recent report from Token Unlocks highlighted the different ways token unlocks affect token prices. PENDLE saw a 4.2% unlock of its total supply but managed a 234% price surge, showing strong market confidence.
🌟 Yearly Overview: DeFi Token Unlocks & Price Performance Breakdown
As the world of DeFi evolves, understanding how token unlocks influence price movements can offer valuable insights. While every token unlock has the potential to shift market dynamics, the results can vary… pic.twitter.com/84belzvlhN
— Token Unlocks (@Token_Unlocks) September 26, 2024
At the time of writing, Pendle’s price was $4.37, with a trading volume of $136 million, placing it at #95 on CoinMarketCap with a live market cap of $706 million. This performance shows how unpredictable token unlocks can be, as Pendle overcame potential downward pressure.
Read also: Over $568 Million in Crypto Token Unlocks Set to Impact Market
In contrast, ENA had a very different outcome. Despite unlocking only 2.9% of its supply, the token dropped by 66.73%.
Ethena was priced at $0.334219, with a trading volume of $68 million at press time. It remains at #104 on CoinMarketCap, with a live market cap of $636 million.
Balanced Market Reactions
Other tokens, like AAVE and MASK, had more moderate reactions to their unlocks. Aave, which unlocked part of its supply, saw a 44% price increase, while Mask Network gained 35%.
Aave was priced at $169.48, with a trading volume of $205.7 million, ranking #37 on CoinMarketCap and having a market cap of $2.6 billion. Mask Network’s price was $2.36, with a volume of $24 million, placing it at #197, with a market cap of $2 billion over the last day.