SUI, OP, ZETA lead $160 million crypto token unlocks next week

• The crypto market will experience a new cliff unlock supply injection next week worth $164.2 million.
• SUI and Optimism will witness the highest unlock event worth more than $50 million and $40 million, respectively.
• Ethena, DYDX, YGG and PRIME are also set for unlocks above $4 million each.

SUI and Optimism (OP) rallied on Friday, with gains of over 20% and 8%, respectively. However, they risk a correction next week due to high unlock events.

Crypto market ready for $164 million supply injection

The crypto market will witness another round of heavy token unlocks next week, with $164.2 million of cliff unlocks entering into the circulating supply of several top altcoins, per crypto intelligence firm Token Unlocks.

Cliff unlocks occur when team members, VCs, advisors or community members receive a large portion of previously locked tokens. The injection of new supply into circulation often causes downward pressure in prices if there isn’t an equivalent increase in demand or liquidity to soak up the selling pressure.

SUI will witness the highest unlock next week, releasing tokens worth 2.47% of its circulating supply — $54.6 million — into circulation. This will bring its total unlock to 25.9%, with an overhang of 74.1% still lurking. SUI has soared over 20% in the past 24 hours alongside other cryptocurrencies.

Optimism (OP) comes next with unlocks worth about $47.3 million, which accounts for 2.64% of its circulating supply. This will bring its total unlock to 28%, with 72% of supply yet to enter circulation. OP is up over 8% on Friday.

Zetachain (ZETA) will unlock 15.7% of its circulating supply worth over $30 million, taking its unlock count to 16.2%. ZETA surged over 14% in the past 24 hours.

Other notable unlock events next week include DYDX, YGG, Echelon Prime (PRIME) and Ethena (ENA), with unlocks worth $9.4 million, $5.7 million, $4.9 million and $4.78 million, respectively.

Weekly token unlocks

Investors should consider these unlocks and their implications on price performance before making investment decisions. Some investors believe unlocks are bullish in the long run, but prices have yet to align with that belief. 

“The last major token unlock we saw was with Arbitrum, and it’s been struggling ever since, hitting all-time lows. This could be a warning sign for other tokens with upcoming unlocks,” wrote Token Unlocks.

While the unlock may appear bearish, the general demand seen in the crypto market on Friday and increasing stablecoin inflows could help prices withstand the new supply pressure.