In January 2024, the cryptocurrency market is poised for a significant liquidity influx, with over $600 million worth of tokens being unlocked from projects such as Aptos (APT), Injective (INJ), and Optimism (OP). These unlocks could potentially impact token prices negatively due to the increased supply hitting the market.
Aptos is set to unlock 24.84 million APT tokens, which is about 8.08% of its current circulating supply, on January 12, 2024. The distribution of these tokens, worth approximately $234.76 million, will be allocated to the foundation, core contributors, Aptos investors, and the Aptos community. A similar event in December 2023 saw an 18.72% drop in APT’s price over six days following the unlock.
Injective’s final token unlock is scheduled for January 21, 2024, with 3.67 million INJ tokens worth $136.73 million being released into the market. The distribution will be among advisors and the team. Notably, 96% of INJ’s supply is already in circulation.
Optimism is preparing for a major unlock on January 30, 2024, with 24.16 million OP tokens valued at $87.70 million being released. The tokens will be distributed to the team and investors. Additionally, over the next 90 days, Optimism plans to unlock another 333,330 OP tokens, currently valued at $1.24 million.
These three projects are not the only ones undergoing token unlocks; approximately 28 projects are expected to release their token locks in the coming month. These events, combined with the potential decision by the Securities and Exchange Commission (SEC) on some spot Bitcoin ETFs, could lead to higher than expected market volatility.