Crypto News– Towards the end of this month, the crypto market is bracing for a substantial influx of previously locked tokens worth hundreds of millions of dollars. This surge is expected to considerably expand token supplies, potentially exerting downward pressure on prices.
Token Unlock Events Scheduled for Aptos, Sandbox, Avalanche, and Other Major Projects this February
Kicking off the action is Aptos on Super Bowl Sunday, with a significant release of 7.32% of its total token supply, valued at approximately $224.82 million according to TokenUnlocks.
The most substantial token unlock of the month proportionally arrives on Valentine’s Day, with The Sandbox’s native token, SAND, seeing over $96 million worth released for the first time—equivalent to 9.19% of SAND’s entire supply.
But why are such large quantities of existing tokens being introduced to the market now? Typically, crypto tokens adhere to detailed roadmaps outlining the gradual release of portions of the token’s supply into circulation. This strategy aims to ensure the token’s stability and long-term viability, with tokens allocated for various purposes such as investor distribution, team incentives, or ecosystem rewards, often spanning years or even decades.
Crypto traders closely monitor token unlocks, particularly those of significant proportions, as they can substantially increase token supplies, thereby impacting prices through increased sell pressure.
The last three weeks of February are slated to witness several more token unlocks, each worth tens of millions of dollars, further shaping the market dynamics.