Next Week’s Token Unlocks: What You Need to Know
Token unlocking plays a crucial role in the cryptocurrency market, allowing previously frozen tokens to be released based on the project’s fundraising situation. These releases are carefully scheduled to prevent market pressure and maintain the token price. However, various factors like lack of liquidity or profit-taking by early investors can impact the token’s dynamics. Here are the four main token unlocks to watch next week:
Pixel Unlock
The Pixel token unlock is scheduled for August 19, with 54.37 million pixels set to be released. Currently, there are 771.04 million PIXEL tokens in circulation. Pixel is a multiplayer game on the Ronin blockchain that uses PIXEL tokens for in-game currency and community governance. The upcoming token unlock will see the distribution of tokens to advisors, project libraries, and ecosystem rewards.
Avalanche (AVAX) Unlock
On August 19, Avalanche (AVAX) is set to unlock 9.54 million tokens, with a current circulation of 395.36 million AVAX. Avalanche is a high-performance decentralized blockchain platform that enables developers to create and deploy dApps. The native token, AVAX, is used for transaction fees, staking, and platform governance. This token release is significant, with approximately $200 million worth of tokens set to be unlocked.
Space ID (ID) Unlock
Space ID, a universal decentralized identity protocol, will unlock 18.49 million ID tokens on August 22. The current circulation stands at 430 million IDs. This protocol connects individuals, assets, and dApps across multiple blockchains, allowing users to have a single identity across applications. The upcoming unlock will see tokens distributed to the Space ID Foundation, ecological funds, and communities.
Transitioning into the next section, it’s important to note the unlock of ENA tokens for ecosystem development on August 25. Ethena, a synthetic currency protocol based on Ethereum, provides cryptocurrency solutions independent of traditional banks.
As we head into the next week, keep an eye on upcoming token unlocks for projects like Galce (GAL), Acala (ACA), and 1INCH, which hold a combined value of over $230 million. While token unlocking may be viewed as bearish, strategic planning can enhance a project’s long-term success by aligning token releases with development milestones and fostering community engagement.
