September has been pivotal for the cryptocurrency market, especially concerning token unlocks. With the month’s onset, significant amounts of various tokens are becoming freely tradable, and the market responds in kind. According to TokenUnlocks, substantial unlocks are scheduled across multiple currencies, including HBAR, SUI, IMX, APT, APE, DYDX, and OP, with a staggering total unlock value of over $225 million.
China’s leading cryptocurrency journalist, Colin Wu, shared a Twitter post providing valuable insights into the potential market impact of the major token unlocks happening this September:
According to TokenUnlocks, large-amount unlocks (unlocked amount greater than 10 million US dollars) in September include HBAR SUI IMX APT APE DYDX OP, etc., with an unlock value of over 225 million US dollars.https://t.co/tuQYnSlfTZ pic.twitter.com/qY3HkgzYVj
— Wu Blockchain (@WuBlockchain) August 31, 2023
On September 1, Hedera Hashgraph’s token, known as HBAR, experienced an unlock of 61.27 million tokens. Despite the optimistic outlook for the blockchain network, the market had a different reaction. HBAR’s value took a 5.20% hit, settling at $0.051 within 24 hours of the unlock. The temporary impact is a stark reminder of the market’s sensitivity to sudden increases in circulating supply.
Shifting focus to the Sui Blockchain’s SUI token, the platform would undergo a massive unlock of 17.68 million tokens on September 3. The price dipped by 2.35%, finding equilibrium at $0.502. SUI, a lesser-known but promising project, would need to demonstrate its potential to attract bullish sentiment post-unlock.
IMX would also join the list of impacted cryptocurrencies on September 9. With an expected unlock of a total 10.46 million tokens, IMX saw a decline of 3.05%, trading at $0.564. Given its promising technology, the market would closely monitor how IMX reacts in the coming days.
Around mid-September, specifically on the 12th, Aptos’ APT tokens would experience a total unlock of 25.99 million. Despite its technological promises and applications, the price is down by 3.49% to $5.22. This trend suggests investors are cautious, taking a ‘wait and see’ approach as the token enters wider circulation.
Midway through the month, ApeCoin (APE) is next in line with a token unlock on September 17. The current market value of the token is $1.43, down 4.09% in the past 24 hours. A substantial 60.69 million tokens would be released, making ApeCoin another cryptocurrency that’s capturing market attention. On September 26, the decentralized exchange dYdX’s DYDX token would also join the list of token unlocks with a total of 14.34 million tokens freed, adding more uncertainty to the market landscape. DYDX currently trades at $2.12, showing a 3.18% decrease in the past 24 hours.
Last but not least, Optimism would round out the month with its token unlock on September 30. Trading at $1.37 and witnessing a sharp decline of 6.80% in the past 24 hours, a whopping 35.51 million tokens are set to be released.
In summary, the high volume of token unlocks this September has ushered in volatility across the board, affecting both well-known and lesser-known projects. While these unlocks might have contributed to short-term price declines, they also offer long-term holders and potential investors an opportunity to enter at lower prices.
