Next week, the crypto market will see the release of several significant token unlocks. Token unlocks refer to the process of releasing tokens that were previously locked up according to a project’s fundraising terms. Â
These unlocks are carefully planned to minimize market impact and avoid a sharp drop in token prices. However, factors like low liquidity or early investors taking profits can affect how these tokens perform in the market. Here are three key token unlocks to keep an eye on next week.Â
Taiko (TAIKO)Â
Unlock Date: September 5Â
Tokens Unlocked: 12 million TAIKOÂ
Current Circulating Supply: 63.09 million TAIKOÂ
Taiko, a decentralized Layer-2 scaling solution for Ethereum, will unlock a large batch of tokens next week. The project, which uses ZK-Rollup technology to operate in a permissionless manner, will release 12 million TAIKO tokens on September 5. Â
This unlock represents about 19% of its current circulating supply. These newly released tokens will go to participants in the Trailblazer program, marking a significant milestone for the project.Â
Immutable (IMX)Â
Unlock Date: September 6Â
Tokens Unlocked: 32.47 million IMXÂ
Current Circulating Supply: 1.57 billion IMXÂ
Immutable, a Layer-2 solution for scaling NFTs on Ethereum, will also see a major token unlock next week. On September 6, the project will release 32.47 million IMX tokens, adding to its current circulating supply of 1.57 billion. Â
This move follows several successful funding rounds, including a $60 million investment in March 2022 and $200 million raised from major investors like ParaFi Capital and Tencent Holdings. The unlocked tokens will support project development and the broader Immutable ecosystem.Â
Mode (MODE)Â
Unlock Date: September 6Â
Tokens Unlocked: 500 million MODEÂ
Current Circulating Supply: 1.3 billion MODEÂ
Mode Network, a modular Layer-2 network focused on decentralized finance (DeFi), will release 500 million MODE tokens on September 6. This unlock represents nearly 40% of its current circulating supply. Â
Built on Optimism’s Bedrock upgrade, Mode Network offers a unique revenue-sharing model at the protocol level, rewarding both DApps and users. While no additional unlocks are planned for the next six months, some in the community remain cautious about the impact of this significant release.Â
Other notable token unlocks set for next week include dYdX (DYDX), Liquity (LQTY), Hashflow (HFT), and Ethena (ENA), with a combined value exceeding $77 million. While token unlocks are often seen as bearish, a well-timed release aligned with project milestones and progress can enhance a project’s long-term success. Properly managed unlocks can motivate team members, increase community involvement, and drive ecosystem growth.Â
