Token unlocks refer to the scheduled release of previously locked or vested tokens into the circulating supply. Projects like Aptos (APT), Layer (LAYER), and Starknet (STRK) are set to unlock large amounts of tokens this month. These events can cause market turbulence, especially if investors anticipate a wave of selling pressure from early backers or team members.
When large amounts of tokens hit the market suddenly, it dilutes the value of existing circulating supply. This can drive prices down if demand doesn’t scale up proportionally. Traders often use unlock calendars to position themselves in advance—either by shorting the token, reducing exposure, or preparing for a potential dip-buy opportunity.
However, not all unlocks lead to price crashes. Some projects time their unlocks with bullish catalysts—like product launches, partnerships, or staking initiatives—to offset the negative sentiment. It’s important for investors to understand who holds the tokens being unlocked (VCs, team, ecosystem funds), and whether those stakeholders are likely to sell or hold long term.
