- In December, over $750 million worth of crypto tokens will become unlocked and released into the markets, including $500 million from dYdX.
- Other projects like Optimism, 1inch Network, and Aptos also have major token unlocks approaching in late November and December.
- The impending unlocks of hundreds of millions in locked tokens could place further pressure on struggling crypto prices, but may also present buying opportunities if prices decline sharply.
The crypto bear market has caused pain for many investors this year. Now, some major projects are preparing to unlock hundreds of millions of dollars worth of tokens, which could place further pressure on struggling crypto prices.
Massive Unlocks on the Horizon
In December, over $750 million worth of crypto tokens will become unlocked and released into the markets.
The largest unlock is coming from decentralized exchange dYdX, which will release around 150 million tokens in December. These tokens are worth close to $500 million at current valuations and were vested for investors, founders and employees.
Originally, dYdX’s tokens were supposed to unlock in February 2023. However, in January, the company announced an extension of the lock-up period to December 1st, 2023. Following the initial December unlock, more tokens will become available in 2024.
dYdX is not the only project with major token unlocks approaching. Ethereum layer-2 network Optimism will unlock 24 million OP tokens worth $41 million on November 30th.
Decentralized finance protocol 1inch Network also has an unlock of around 98 million tokens coming up on December 1st, worth approximately $33 million.
And on December 12th, proof-of-stake blockchain Aptos will unlock almost 25 million tokens valued at $180 million.
With hundreds of millions in locked tokens scheduled to flood markets in December, additional pressure could be placed on struggling crypto assets. Investors should closely monitor how the impending unlocks impact the market, as further drawdowns are possible. However, the releases could also present buying opportunities for long-term investors if prices decline significantly.