Key Token Unlocks in January 2025: Which Altcoins to Watch Closely?

The cryptocurrency market is set to kick off 2025 with a significant event: approximately $7 billion worth of token unlocks in January.

These unlocks, often associated with downward price pressure on digital assets, are critical for investors to monitor.

Key Token Unlocks in January 2025

Token unlocks are structured events designed to release tokens into circulation gradually. This approach prevents early investors and project teams from selling off large volumes at once, which could destabilize the market.

Despite the controlled nature of these releases, they often lead to short-term price declines for the affected cryptocurrencies. Recent analyses indicate that the full impact of these unlocks can take weeks to materialize.

January’s token unlocks feature a mix of one-time unlocks (Cliff Unlocks) and gradual unlocks (Linear Unlocks):

Major One-Time Unlocks

1. SUI

- Amount: 64.19 million tokens
- Value: $270 million
- Date: January 1
- Purpose: Distributed to investors, community reserves, and Mysten Labs treasury.

2. ZetaChain (ZETA)

- Amount: 54 million tokens
- Value: $42 million
- Date: January 1
- Purpose: Funding development, advisory roles, and liquidity provision.

3. Kaspa (KAS)

- Amount: 182.23 million tokens
- Value: $20 million
- Date: January 6

4. Etna (ENA)

- Amount: 12 million tokens
- Value: $12.16 million
- Date: By January 8
- Purpose: Ecosystem development.

5. Optimism (OP)

- Amount: 31.34 million tokens
- Value: $57 million
- Date: By January 9

Gradual Unlocks (Linear Unlocks)

These unlocks introduce a steady stream of tokens into the market daily:

Solana (SOL): $14 million per day
Worldcoin (WLD): $12.4 million per day
Celestia (TIA): $5.1 million per day
Dogecoin (DOGE): $4.63 million per day
Avalanche (AVAX): $4.02 million per day
Polkadot (DOT): $2.94 million per day

Market Implications

The first week of January alone will see token unlocks worth approximately $1 billion, with a further $3.7 billion set to be unlocked between January 13 and 19. The sheer scale of these releases could amplify volatility in the cryptocurrency market.

Investors should remain vigilant as these events unfold, particularly for altcoins affected by significant one-time or daily unlocks. While these token unlocks could create short-term price fluctuations, they also offer long-term holders opportunities to accumulate assets at discounted prices.

Conclusion

January 2025’s token unlocks highlight the importance of understanding market mechanics and the potential impact of new supply entering circulation. As the crypto market evolves, these events will remain a crucial factor influencing price trends and investor strategies.