Crypto Market Faces $585M+ in Token Unlocks — Heightened Altcoin Volatility Ahead
Data from Tokenomist and Wu Blockchain show more than $585 million in token unlocks scheduled between Dec 29 and Jan 5. Large cliff (one-time) unlocks include HYPE (~9.92M tokens, ~$251M, ~2.59% adjusted supply), SUI (46.41M), EIGEN (unlock ≈9.74% of adjusted supply), KMNO, OP, ENA, ZORA and SVL — many releasing multi-million-dollar amounts that can suddenly boost circulating supply. Concurrent daily linear distributions exceeding $1M are set for RAIN (9.43B tokens, >$76M across seven days), SOL (~484k tokens, >$61M), TRUMP, WLD, DOGE, AVAX and ASTER. Compared with earlier reports of Dec 15–22 unlocks, the later window shifts and expands the total value and highlights new large cliff events (notably HYPE and EIGEN) and sustained linear pressure on high-profile tokens like SOL and RAIN. One-time cliff unlocks tend to cause abrupt supply shocks and short-term selling pressure if recipients exit into markets; linear unlocks spread selling over time but still materially increase supply and on-exchange liquidity. Traders should monitor unlock schedules, on-chain holder behavior, exchange inflows, and order-book depth for targeted altcoins — especially HYPE, SUI, EIGEN, SOL, RAIN, DOGE, AVAX and ZORA — because these events can trigger heightened volatility, temporary price declines, or opportunistic dip-buying. This is not investment advice.
Bearish
Large cliff unlocks (HYPE, SUI, EIGEN, etc.) represent sudden increases in circulating supply that can prompt recipients to sell, creating immediate downward pressure on token prices. Significant linear unlocks (RAIN, SOL, DOGE, AVAX) increase sell-side volume over multiple days, raising on-exchange liquidity and amplifying volatility. Historically, large one-time unlocks often cause short-term price drops, especially for low-liquidity altcoins, while linear unlocks produce persistent, moderate selling pressure. Together, the scheduled $585M+ in unlocks is likely to be net bearish for the mentioned tokens in the short term. Longer-term impact depends on whether unlock recipients hold, stake, or sell and on subsequent demand restoration; if demand absorbs the increased supply, effects can be transient, but immediate market reaction is typically negative.