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- Crypto market will witness another round of token unlocks totaling $214 million next week.
- ARB, EIGEN and AXS will each release over $40 million worth of their tokens into circulation.
- TAIKO, STRK and APE will each unlock more than $10 million worth of their tokens.
Token Unlocks data on Friday indicates that the crypto market is poised for another round of supply hikes next week, with projects including EigenLayer (EIGEN), Arbitrum (ARB), Axie Infinity (AXS) and Starknet (STRK) set to release a combined $214 million worth of their tokens into circulation.
Crypto market set for over $214 million supply injection
The crypto market will witness another round of supply injection, with over $214 million worth of cliff unlocks entering into circulation next week.
Cliff unlocks are events where crypto projects release vested tokens to investors, community members or advisors after a lockup period. The increased supply from token unlocks frequently generates negative sentiment among investors, which can weigh down prices.
Tokens involved in next week’s supply unlock include Eigenlayer (EIGEN), Arbitrum (ARB), Axie Infinity (AXS), Starknet (STRK), Taiko (TAIKO), ApeCoin (APE), Echelon Prime (PRIME), Render (RENDER), Cardano (ADA) and Ethena (ENA).
ARB, EIGEN and AXS will witness the highest unlock volume next week, each releasing $48 million, $41 million and $41 million of their tokens into circulation, respectively.
ARB and AXS were both up over 3% at the time of publication. Arbitrum will release 2.56% of its current circulating supply to its team and private investors, and AXS will inject 9.25 million tokens worth about 6% of its supply into circulation.
On the other hand, EIGEN has seen double-digit gains in the past 24 hours as its community anticipates another supply hike. The surge in its price has pushed its weekly gains to 11% despite previous controversies surrounding the project.
Several crypto community members criticized EigenLayer following a reported hack on its platform, which led to the withdrawal of $5.5 million worth of its tokens.
The selling activity aroused suspicion among its community members, who hinted at an insider being responsible for the hack. The token, which only began trading this month after completing its airdrop, has raised mixed concerns from investors, especially with the staking of its locked tokens.
STRK follows closely behind, adding $25 million worth of its tokens into the market for its team and private investors. The token is up nearly 9% in the past 24 hours, with its weekly gains rising to 4%.
Other tokens set for supply injection include TAIKO and APE, which will unlock $18 million and $10 million worth of their tokens next week, respectively.
Smaller unlocks include ENA, PRIME, ADA and PIXEL, adding $3.8 million, $5.8 million, $6.3 million and $6.8 million to their current supply, respectively.