Token unlocks in September are set to influence the crypto market, starting from the first day of the month. Traditionally, in a bearish period, the influx of new tokens could challenge the available liquidity, particularly for low-float tokens.
The crypto market has previously absorbed similar unlocks, allowing most assets to continue attracting traffic and generating fees. However, September brings a new wave of token unlocks that could impact the trading behavior of several notable tokens.
Significant token unlocks in September’s first week
The first week of September will unlock over $360 million tokens. Although this is lower than previous months, releasing these tokens might still exert downward pressure on prices. The bulk of unlocks, valued at more than $405 million, is scheduled for the second week of the month. Additionally, cliff unlocks amounting to $118 million will further test market liquidity during this period.
Linear unlocks for low-float tokens will continue throughout September, with an estimated $280 million in tokens released weekly. Notable projects, including Arbitrum (ARB), Optimism (OP), Sui (SUI), Manta Network (MANTA), and Strike (STRK), will have their tokens unlocked as part of this process. This unlock will provide access to tokens from an earlier private sale for SUI.
Taiko leads in token unlocks
Among the significant token unlocks in September, Taiko stands out due to the absolute value and supply inflation. The Taiko Layer 2 network, which aims to compete with networks like Base, will see a substantial increase in its token supply. This unlock is particularly notable as it involves the release of Trailblazer airdrop tokens distributed to the community during June and July. The airdrop will expand the TAIKO token supply by 15.8%, providing more tokens to wallets participating in protocol activities.
Taiko may face considerable price pressure, as only 7% of its total supply is currently in circulation. Since the peak of the airdrop campaign in June, the TAIKO token has declined approximately 50%, now trading at $1.49. With the Taiko Labs team, early investors, and the Taiko Foundation holding around 47% of all tokens, the community has access to less than 10% of the supply. This concentration allows whales and the foundation to control liquidity, distribution, and voting on protocol matters.
Immutable’s unlock for development
Another major unlock is scheduled for Immutable (IMX) on September 6, introducing $40.92 million in new tokens. These tokens are intended for project and ecosystem development, adding 2% to the circulating supply. IMX has already unlocked 79% of its supply, and this latest release is expected to maintain price stability. Despite this, IMX has remained within a trading range, declining its price to $1.25 following the unlock announcement. IMX reached its peak above $9.52 shortly after its launch but has not achieved a new high since.
Cheelee is another project with a significant unlock in September. More than $388 million worth of tokens are expected to be released. Cheelee, a low-float project with limited exchange listings, has scheduled frequent cliff unlocks, primarily for community rewards.
MODE, another project, will undergo a major unlock on September 5, increasing its supply by 38.4%. The token has been downward since its launch in May, trading at $0.012. Eigen Layer also joins the list of September unlocks, with plans to release $28 million worth of EIGEN tokens on September 10, targeting early airdrop participants. These token unlocks could present challenges for the crypto market, particularly in absorbing the influx of new tokens while maintaining price stability.