Token Unlocks data on Friday revealed that the crypto market is set to experience a supply hike of $200 million in cliff unlocks, with Aptos (APT) and Eigenlayer (EIGEN) leading the way.
The crypto market is set for another round of token unlocks next week, with several projects adding a combined $200 million worth of new tokens into circulation.
Tokens that will participate in next week's cliff unlocks include Aptos (APT), Eigenlayer (EIGEN), Optimism (OP), Neon (NEON), Cardano (ADA) and Mode (MODE). These projects will begin adding to their current circulating supply from Monday, with APT and EIGEN holding the highest share of unlock volumes.
Cliff Unlocks October 7- 13
Cliff unlocks are events where crypto projects release vested tokens to investors, community members or advisors after a lockup period. The heightened supply from token unlocks frequently generates negative sentiment among investors, which can trigger significant sell-offs.
APT will witness $93 million in unlocks, which may lead to a potential correction after its impressive performance in the past seven days. APT is up more than 9% in the past 24 hours, with its weekly gains up 9.3% amid the earlier market decline on October 1.
The asset's growth may be due to Franklin Templeton's recent launch of its Tokenized Money-market fund (FOBXX) on the Aptos chain. The move allows investors to begin to access the fund through Aptos's network.
EIGEN will also add $34 million worth of its tokens into circulation, accounting for 5% of its current circulating supply. The token is up nearly 6% on Friday, despite reports of a user losing 1.6 million EIGEN to hackers.
Eigenlayer has also been the subject of controversy after community members lamented that the team distributed $6 million worth of its tokens to VCs without any prior lockup. These reactions and the upcoming token unlock could negatively affect EIGEN's price.
Other tokens that will see a hike in circulating supply include OP and NEON, which will release $19 million and $17 million worth of their tokens into circulation.
NEON is up over 5% in the past 24 hours. The project will inject more than 90% of its current supply into circulation.
OP is also up over 5%, recovering from a weekly decline of nearly 16%.
Additionally, Keyrock data noted a massive failure among airdrop projects with high fully diluted valuation (FDV) and low floats, particularly after 90 days of launch.
However, crypto insight provider Crypto Koryo stated in a September post that the low float and high FDV sectors were among the month's three best performers.
They went further to state that if a low-float, high-FDV token performs well, unlock events could act as a "strategy."