Major Token Unlock Events Affecting Crypto Markets This Week
The cryptocurrency sector is experiencing heightened activity this week due to a significant token unlock event totaling $132 million. This event is a crucial moment for both investors and project teams, as it involves the release of tokens that were previously held in escrow. Such unlocks affect the total supply of tokens and can influence market prices in various ways.
Detailed Overview of Key Token Unlocks This Week
Space ID (ID)
On July 22, Space ID, a decentralized identity protocol designed to unify digital identities across different platforms, will release 18.49 million ID tokens. This will increase the circulating supply from 430.5 million ID tokens. The released tokens will be distributed among various stakeholders, including the Space ID Foundation, the ecosystem fund, airdrop recipients, and for marketing purposes. Space ID allows users to use a single domain name to represent their identity across multiple applications and blockchains, facilitating connections between people, assets, and decentralized applications (dApps).
AltLayer (ALT)
On July 25, AltLayer, a protocol aimed at enhancing blockchain scalability via Restaked Rollups, will unlock 684.21 million ALT tokens. This release represents 42% of the total circulating supply of 1.62 billion ALT tokens. The tokens will be allocated to the protocol’s treasury, investors, team members, advisors, and community contributors. This substantial unlock accounts for 84.5% of all cliff unlocks scheduled for the next week and may negatively impact the token’s price due to the large amount released compared to its current circulating supply.
Yield Guild Games (YGG)
Yield Guild Games (YGG), a community focused on play-to-earn gaming, is set to release 14.08 million YGG tokens on July 27. This action will expand the existing circulating supply of 376.25 million YGG tokens. The newly unlocked tokens will be allocated among community members, founders, investors, and the guild’s treasury to bolster growth and development. Yield Guild Games offers gamers the opportunity to earn cryptocurrency rewards by engaging in blockchain-based games and invests in NFTs such as in-game items and virtual land for its members.
SingularityNET (AGIX)
SingularityNET is set to unlock 8.45 million AGIX tokens on July 28, expanding its current circulating supply of 639.66 million AGIX. The tokens will be distributed to participants in the AGIX-ADA rewards program, which aims to incentivize and reward community involvement and contributions to the platform’s advancement. AGIX plays a crucial role in transactions, governance, and rewarding node operators, and supports cross-chain functionality on the Cardano and Ethereum networks.
Ethena (ENA)
On July 28, Ethena plans to release 14.89 million ENA tokens, increasing the total circulating supply from 1.7 billion ENA. These tokens will support the growth and development of the ecosystem. Ethena provides a cryptocurrency solution that functions separately from conventional banking systems and features a dollar-based savings product called the ‘Internet Bond.’ Additionally, the ENA token plays a role in governance by enabling voting on the platform.
Conclusion
This week marks a significant period for the cryptocurrency market, with a combined total of $132 million in token unlocks across several key projects. The increased circulating supplies for Space ID, AltLayer, Yield Guild Games, SingularityNET, and Ethena may influence market dynamics and the growth of these ecosystems. Investors and project teams are closely watching these developments, as the release of previously escrowed tokens could have notable effects on market behavior and project progress.
