In August, the crypto market is expected to unlock tokens worth about $3 billion, almost half as much as in July. However, even this amount can affect market dynamics and cause short-term price fluctuations, especially against the backdrop of limited liquidity and activity of large holders.
The main player of the month is Solana
Solana is expected to have the largest volume of unlocks in August - about $367 million. SOL showed excellent results in July: a price increase to $206, a 14% increase in the volume of tokens in DeFi, as well as a 30% increase in trading on decentralized exchanges. However, the mass release of tokens on the market may put pressure on the price, which, according to analysts, can fall to $115 or even lower.
Unlocks are typically releases of previously frozen tokens, often intended for project teams, early investors, or partners. While they are ideally planned with market sustainability in mind, a sudden increase in supply without corresponding demand can trigger a wave of selling.
Sui is also preparing for a large-scale unlock
Sui is in second place in terms of unlock volume. The project plans to unlock almost $216 million worth of tokens during August. Such large volumes can affect the price, especially if there is not enough support from buyers.
Despite the potential risks, both SUI and SOL have attracted institutional attention. Mill City Ventures allocated $450 million to purchase SUI, viewing the token as a reserve asset, and Upexi allocated $500 million to acquire Solana for its crypto portfolio.
Well-known trader Momin expressed confidence in the growth potential of SUI, despite the recent drawdown caused by fears about the upcoming unlock: “Markets usually react with growth on the day of unlocking. I expect the same to happen here.”
Other projects and the big picture
Additional large unlocks will affect Worldcoin and Trump Coin - their combined unlock amount will reach approximately $377 million. The rest is accounted for by projects with a more modest capitalization.
Tokenomist analysts remind that an important indicator in the conditions of supply growth remains the market's ability to absorb it. In a positive macro environment or favorable news, possible pressure from sellers can be partially offset.
Investors should closely monitor unlock calendars and wallet activity in order not to miss important signals about short-term price changes.