The crypto market is experiencing a lot of volatility this week, but it’s nothing of our doing. We are a week of major token unlock events, during which $142.34 million worth of assets are to become unlocked.
Today alone, investors can expect to see a good deal of not-so-friendly market effects as around $38 million worth of unlocked tokens hitting the market. In total, during this week, we’re looking at around $142.34 million worth of unlocked assets hitting the market (again, not necessarily friendly).
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Significant Unlocks Set to Trigger Volatility
One of the most notable events connected with unlocking is happening with CONX, which will release tokens worth $24.6 million. This release will account for a staggering 113.04% of its circulating supply, really one of the most significant unlocks we’ve seen in a while. And because it releases such a large portion of its available supply all at once, investors should be wary of possible (and even likely) dilution. So what happens next?
Well, for one, a CONX market in which a lot of tokens are suddenly being sold as new unlocked tokens flood into it could mean downward pressure (short-term, at least) on the price of CONX.
The APT token will also experience a significant unlocking event, with $40.5 million in assets being liberated. This unlocking will constitute 1.15% of its total supply, with 73.82% of its tokens having been previously locked. Although the percentage of supply that is being released is not as high as for CONX, the release of a supply that is largely made up of previously locked tokens actually does increase the probability of some short-term selling. And that does mean some volatility in the APT token price is also expected.
ARB, the native token of the Arbitrum ecosystem, is set for a major unlock as well. Tokens worth $37.4 million will now come into circulation. That’s 2.10% of ARB’s total supply. But if we look closer, a much larger portion of the tokens that were locked is now set free: 67.05% of the previously locked tokens will now be available.
So what does this mean? Well, as we discussed with APT, the potential for selling pressure is significant. These are assets that are now coming into circulation that weren’t in circulation before. We know that ARB is a prominent asset in the DeFi ecosystem. So, any major moves either up of down could ripple through the rest of the crypto market.
Major Unlocks & Market Impact: $142.34M unlocks this week. Potential sell pressure across key tokens:
CONX unlocks $24.6M, representing 113.04% of its circulating supply. Significant dilution risk and extreme volatility expected
APT releases $40.5M (1.15% of supply), with… pic.twitter.com/ikbkK4P2sq
— IT Tech (@IT_Tech_PL) March 10, 2025
March 15 Unlock Cluster Heightens Market Risks
The timing of these unlocks is particularly concerning, as March 15 will see a simultaneous release of tokens from CONX, SEI, and STRK. This confluence of unlock events is expected to create heightened volatility risks, as the combined selling pressure from several projects could deepen market fluctuations. As a result, that day will likely be marked by intensified trading and noticeable price shifts among these tokens, as well as others in their vicinity.
The SEI token, renowned for its position in decentralized finance, will also see an unlock, adding to the situation’s complexity. Like CONX and APT, SEI’s release has the potential to create short-term selling pressure. But how much is SEI unlocking? And how much more is it likely to impact the market than the average unlock already does? STRK, a token tied to the STRK protocol, will use the same March 15 date to free a portion of its previously locked assets in a similarly timed unfurling.
This means the need for increased caution and event monitoring by traders. At the same time, multiple releases happening in close proximity to each other could serve to exaggerate any short-term market moves—up or down. If things tip over, the potential for a coordinated sell-off in these tokens could set off a chain reaction affecting the much broader crypto market.
Market Reactions and Potential Strategies
As these unlock events take place, investors and traders will need to think hard and well on what their next move will be. Because if you’re holding CONX, APT, ARB, or SEI tokens, you’re facing a decision that may not feel altogether comfortable when judged by the tight standards of contemporary investing: Should you sell into this unlock event, or hold on and potentially reap better, longer-term rewards? Certainly, selling into the unlock might feel like you’re disposing of assets right as they’re being set free, and that initial, likely sell-off could create dips in prices that might tempt you back into the crypto market after you’ve exited.
Traders who work on a short-term basis might try to make quick profits from the volatility by executing fast trades. But these traders have to be careful, as conditions can change suddenly and unexpectedly. And even these nimble traders need to consider the wider market context. After all, if a bunch of tokens gets unlocked, that might affect market sentiment, which in turn could have an impact on not just the cryptocurrency in question but a whole range of other cryptocurrencies.
Conclusion
This week, more than $142 million in tokens is scheduled to be unlocked. It should produce a volatility wave in the crypto market. Large unlocks, especially for CONX, APT, and ARB tokens, are just plain risky, and here’s why: if people need to sell these just-unlocked tokens to realize their worth (as opposed to just holding the tokens), that’s a lot of selling going on in a very crowded space.
A sharp correction in market prices feels likely over the next several days as these heavy sell events unfold, and that’s a reaction to what should be some very big unlock events.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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