Crypto Traders Brace for $428M in Token Unlocks This Week, Including SOL, WLD, and OM

The cryptocurrency market is preparing for significant volatility this week as more than $428 million worth of tokens are scheduled to be unlocked between March 18 and March 24. These token unlocks, which include both cliff unlocks (large one-time token releases) and linear releases (gradual token distribution), could have a major impact on market sentiment and asset prices. Investors are keeping a close eye on these unlocks, as they could lead to increased selling pressure, especially from early investors and project teams.

The most notable token unlock during this period is from Polyhedra Network’s ZKJ token. On March 19, 15.53 million ZKJ tokens, which represent approximately 25.72% of its circulating supply, will be unlocked. This will be one of the largest releases, making it a focal point for traders. In addition, Fasttoken will release 20 million FTN tokens, worth about $79.8 million, on March 18, accounting for 4.6% of its total supply. On the same day, QuantixAI will see the unlocking of approximately $41.71 million worth of QAI tokens.

Other projects are also contributing to the total volume of unlocked tokens. Metars Genesis will release 10 million MRS tokens worth nearly $100 million, while Mantra will unlock 5 million OM tokens worth $34.5 million. Meanwhile, Melania Meme will unlock 26.25 million tokens worth approximately $17.9 million in this period. These unlocks, especially from smaller or emerging tokens, could have a ripple effect on their respective markets.

At the same time, several high-profile projects will face ongoing linear unlocks. Solana (SOL), Worldcoin (WLD), Celestia, Mantra (OM), and Dogecoin (DOGE) will each see daily releases of their respective tokens. Solana, for instance, will have $8.58 million worth of tokens unlocked daily, while Worldcoin will see $4.55 million unlocked. Other projects like Celestia and Mantra will experience significant releases as well, albeit on a smaller scale. Even established projects like Dogecoin will contribute to the overall daily token unlock activity.

Although token unlocks are often designed to prevent large-scale sell-offs by early investors or project teams, they can still put short-term pressure on prices. As more tokens are made available, the increased supply can potentially lower the price if demand does not keep pace with the influx of new tokens.

This influx of token unlocks comes at a time when the broader market is already facing external pressures. Global tensions, especially between the U.S. and China, have raised concerns about potential economic slowdowns. The latest trade tensions, including the recent tariffs introduced by former U.S. President Donald Trump, have added to investor caution. These geopolitical concerns, along with inflation and the U.S. Federal Reserve’s hawkish stance on interest rates, have created uncertainty in traditional and crypto markets alike.

As of now, the total cryptocurrency market capitalization has dropped more than 3%, falling to $2.81 trillion. This decline in the overall market cap could be indicative of broader risk aversion among investors, who are seeking safe-haven assets amid rising global economic uncertainty.

The impact of these token unlocks on the cryptocurrency market will be closely watched over the next few days. Traders and investors are paying close attention to how these releases, combined with external market factors, will affect the price movements of tokens like Solana, Worldcoin, and others that are experiencing unlocks. In particular, the upcoming release of Solana’s locked tokens will be significant as the coin recently faced price declines due to previous token unlock events, which led to a 9% drop in its value.

In conclusion, the upcoming token unlocks could potentially trigger heightened volatility in the cryptocurrency market, with the largest releases occurring from Polyhedra Network, Fasttoken, QuantixAI, and Solana, among others. Investors are facing a challenging environment, and many are unsure how the market will react to these significant token unlocks combined with broader economic factors. As always, caution is advised, and it remains to be seen whether these unlocks will lead to short-term price declines or if the market will absorb the added supply without significant disruption.