• August 2024 will see nearly $1.5 billion in token unlocks, including notable releases of XRP and Avalanche AVAX tokens.

• XRP token will have a significant unlock of 1 billion tokens, valued at $609 million, on August 1st, with Ripple potentially re-locking a considerable portion.

• Avalanche will unlock 2.4% of its AVAX supply on August 20th to enhance network growth and liquidity.

August is shaping to be a monumental month for token unlocks, with nearly $1.5 billion worth of tokens set to be released into the market.

This article will explore the significant token unlock events occurring this month, including the release of XRP tokens, Avalanche AVAX tokens, and more.

$600M XRP Token Release to Bring August Crypto Unlocks to $1.5B

Nearly $1.5 billion in tokens from major crypto projects are set to be unlocked in August, with 1 billion XRP tokens—worth $609 million at current prices—making up a massive part of the month’s total on August 1st.

Ripple, the firm behind the XRP Ledger blockchain and its native XRP token, has consistently unlocked up to 1 billion tokens on the first day of every month since 2017. It uses several leading escrow wallets, including Ripple (24) and Ripple (25), to evenly split the monthly unlocks.

However, Ripple may look to re-lock much of the newly released XRP. Ripple relocked 800 million XRP from its June 1 unlock but still made moves to sell around 300 million XRP—worth $182 million at the time—according to data from TradingView.

Also, Read: Ripple Partner SBI Holdings Sets Sail in NFT Space with XRPL Launch.

While up to 1 billion XRP tokens are unlocked at the start of each month, the actual amount of XRP that would be released into circulation is “likely much less than this” due to a re-escrow process, wrote the XRP Ledger in a 2017 blog post.

Other significant unlocks in August include those from layer-1 network Avalanche and cross-chain bridging platform Wormhole, releasing a combined $449 million worth of tokens, per Token Unlocks data.

Avalanche AVAX Release

On August 20th, Avalanche will unlock 2.4% of the circulating supply of its Avalanche AVAX tokens, amounting to 9.4 million AVAX with a current market value of $268 million. This unlock is part of a series of scheduled releases aimed at gradually increasing the token’s circulation while maintaining stability in its value.

Avalanche is known for its high-performance blockchain platform, which supports decentralized applications and custom blockchain networks. The release of additional AVAX tokens aims to bolster the network’s growth and adoption, providing liquidity and incentivizing participation from developers and users alike.

August Crypto Unlocks

Besides XRP and Avalanche, August will see several other notable token unlocks. On August 3rd, Wormhole will unlock 33.3% of its circulating supply, amounting to 600 million Wormhole (W) tokens with a current market value of $180.5 million. This follows its long-awaited airdrop launch on April 4th.

Other significant unlocks on the first day of August include:

• Sui: Will unlock 2.56% of its circulating supply, releasing 64 million tokens with a current value of $50 million.
• dYdX: Will unlock 8.33 million tokens worth nearly $11 million, amounting to 3.65% of its circulating supply. Tokens will unlock for investors, founders, staff, and future employees.
• ZetaChain: The new layer-1 network will unlock nearly 18.9% of its circulating ZetaChain (ZETA) tokens, with 53.9 million tokens having a market value of around $34.5 million.

Crypto gaming network ImmutableX will unlock 2.11% of the circulating supply of Immutable (IMX) tokens on August 9th, amounting to 32.5 million tokens valued at $49 million.

Aptos, Sui’s rival layer-1 network, will unlock $80 million worth of its native Aptos (APT) token on August 12th, while Web3 gaming platform The Sandbox will unlock $69 million worth of its native The Sandbox (SAND) tokens on August 14th.

Two Ethereum layer-2 networks, Starknet and Arbitrum, are also set for significant token releases. On August 15th, Starknet will unlock 64 million Starknet (STRK) tokens, amounting to 4.4% of the token’s circulating supply, with a current market value of $35 million.

On August 16th, Arbitrum will unlock 92.6 million Arbitrum (ARB) tokens, amounting to 2.8% of its circulating supply, valued at $67 million.

Impact of Token Unlocks on Market Dynamics

The upcoming token unlocked in August will significantly impact the cryptocurrency market, increasing volatility and potential price fluctuations. As large volumes of tokens become available for trading, a market reaction can often range from short-term declines, as investors may choose to sell unlocked tokens for profit, to increases in buying activity spurred by heightened interest in the projects involved.

Historically, significant unlock events can lead to speculative trading, particularly for tokens like XRP and AVAX, which have substantial communities and established trading volumes. Additionally, how projects manage their unlocked tokens—whether through strategic selling or re-escrow processes—will determine the long-term effects on their token value and overall market sentiment.

Investors and stakeholders should remain vigilant and consider the potential opportunities and risks associated with these unlocks as they unfold throughout the month.

Conclusion

August is a pivotal month for the crypto market, with significant token unlocks, including XRP tokens and Avalanche AVAX tokens, contributing to nearly $1.5 billion worth of August crypto unlocks. These events highlight the crypto industry’s dynamic nature and blockchain technology’s continuous evolution.

Stay tuned for more updates and insights into cryptocurrency and blockchain technologies.