• Over $27 billion in crypto tokens are set to be unlocked in early 2025
• Market stability is at risk as new supply enters circulation

The market is on the brink of a major liquidity challenge, with billions of dollars’ worth of crypto tokens set to be unlocked in the first quarter of 2025. Last month alone saw over $15 billion worth of tokens released, and the pressure is far from over. Another $3 billion is expected this month, with an additional $9 billion scheduled for release between March and April. This influx of new supply is poised to test the market’s ability to absorb these assets while maintaining strong demand.

Will the market handle the strain, or are we on the verge of a shake-up?

The token unlock landscape

Token unlocks are the scheduled release of locked or vested tokens into circulation, often following pre-defined timelines set during a project’s launch. These events are critical for the market as they directly impact a token’s circulating supply, potentially altering its price dynamics. Historically, large unlocks have influenced investor sentiment, with some viewing them as opportunities for growth, while others fear selling pressure from early investors or insiders.

Token unlocks often lead to heightened liquidity, but they can also trigger greater volatility as markets adjust to the influx of new supply. The balance between demand and supply during these periods becomes a defining factor in determining a token’s future trajectory.

2025 – Analyzing token unlocks so far

The data highlighted a significant spike in token unlocks during January, with over $15 billion released, dwarfing the $8 billion from December. February is expected to see a sharp decline in unlock value, with the same sitting under $3 billion.

However, March and April are set to bring additional surges, each exceeding $4 billion. This uneven distribution reflects varying vesting schedules across projects.

The January peak likely increased market

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Author: Samantha LKM