August 2024 Crypto Unlocks: $1.5B in Tokens Set to Hit the Market, $600M in XRP

Key Takeaways:

• Massive Token Unlocks in August: Nearly $1.5 billion worth of tokens from major crypto projects are set to be released in August, including a significant $600 million XRP release.
• Ripple’s Consistent Unlocks: Ripple continues its practice of unlocking up to 1 billion XRP tokens on the first day of each month, though the actual amount released into circulation is often less due to a re-escrow process.
• Significant Releases from Other Projects: In addition to XRP, other major projects like Avalanche and Wormhole will release a combined $449 million worth of tokens in August.
• Impact on Circulating Supply: Various projects, including Sui, dYdX, and ZetaChain, will also unlock significant portions of their circulating supplies on August 1, adding to the overall token influx.
• Broader Market Implications: The substantial token unlocks from multiple projects, including ImmutableX, Aptos, The Sandbox, Starknet, and Arbitrum, highlight the increasing activity and potential volatility in the crypto market this August.

The month of August is shaping up to be monumental for token unlocks in the crypto market, with nearly $1.5 billion worth of tokens set to be released. This wave of unlocks includes significant contributions from major projects like Ripple, Avalanche, and Wormhole, among others.

Ripple’s XRP Token Release

Ripple, the company behind the XRP Ledger and its native token XRP, has a longstanding practice of unlocking up to 1 billion XRP tokens on the first day of every month since 2017. These tokens are drawn from several main escrow wallets, primarily Ripple (24) and Ripple (25), ensuring an even distribution of unlocks each month.

However, the actual amount of XRP that enters circulation is often much less than the unlocked amount due to a re-escrow process. This mechanism helps manage the supply and demand dynamics, potentially mitigating drastic impacts on XRP price. Despite the potential for up to 1 billion XRP tokens being unlocked, Ripple’s strategic approach ensures that the influx into the market is carefully controlled.

Read More: Ripple Price Prediction

Other Major Token Unlocks in August

August will also see significant token releases from other prominent projects. Layer-1 network Avalanche and cross-chain bridging platform Wormhole are set to release a combined $449 million worth of tokens, according to Token Unlocks data.

On August 3, Wormhole will unlock 33.3% of its circulating supply, which amounts to 600 million W tokens valued at approximately $180.5 million. This follows Wormhole’s long-awaited airdrop launch on April 4, adding to the anticipation around this significant token release.

Later in the month, on August 20, Avalanche will unlock 2.4% of its circulating supply, which translates to 9.4 million AVAX tokens valued at $268 million. This release is part of Avalanche’s ongoing strategy to steadily increase its token circulation while maintaining market stability.

August 1 Token Releases

Several other projects will also see substantial token unlocks on the first day of August.

• Sui: This layer-1 network will release 2.56% of its circulating supply, amounting to 64 million tokens valued at $50 million.
• dYdX: The decentralized exchange will unlock 8.33 million tokens worth nearly $11 million, constituting 3.65% of its circulating supply. The tokens will be distributed among investors, founders, staff, and future employees.
• ZetaChain: This universal blockchain will unlock nearly 18.9% of its circulating supply, equating to 53.9 million tokens with a market value of around $34.5 million. ZetaChain launched in February and has been making significant strides in the blockchain space.

Other noteworthy token unlocks throughout August include:

• ImmutableX: On August 9, this crypto gaming network will release 32.5 million IMX tokens, valued at $49 million, representing 2.11% of its circulating supply.
• Aptos: A rival to Sui, this layer-1 network will unlock $80 million worth of its native token APT on August 12.
• The Sandbox: This Web3 gaming platform will unlock $69 million worth of SAND tokens on August 14.
• Starknet and Arbitrum: These Ethereum layer-2 networks will also have significant token releases. Starknet will unlock 64 million tokens worth $35 million on August 15, while Arbitrum will release 92.6 million tokens valued at $67 million on August 16.

Conclusion

The massive token unlocks scheduled for August are poised to significantly impact the crypto market. Ripple’s $600 million XRP token release alone highlights the scale of these unlocks, which collectively will bring nearly $1.5 billion worth of tokens into circulation. As these unlocks unfold, traders and investors will be keenly watching the market dynamics, assessing how these influxes will influence prices, liquidity, and overall market sentiment. This month could prove to be a pivotal period for many crypto assets as they navigate the complexities of increased supply and market reactions.

Source: CoinTelegraph