Token Unlocks to Watch Out For in 2025

A token unlock refers to the release of previously locked tokens into circulation. Many blockchain projects implement vesting schedules to prevent early investors and team members from selling all their holdings at once, which could destabilize the token's price. Token unlock events impact market supply and may impact price fluctuations since an abundance of tokens will be made available for trading.

As we reach the end of the first quarter of 2025, we will share the major token unlocks and their implications.

Key Takeaways

• Token unlocks greatly impact supply, demand, and price changes.
• Token locking mechanisms, such as vesting schedules and governance locks, regulate the release of tokens into circulation. These mechanisms prevent early sell-offs and ensure long-term project sustainability.
• Investors can anticipate price fluctuations by tracking upcoming token unlocks and strategically position themselves to maximize gains or minimize risks.

What Does “Token Locked” Mean?

People often confuse "token locked" with "token unlock," so we will clarify the difference. A locked token refers to a cryptocurrency temporarily restricted from being traded or transferred, usually due to vesting periods or project incentives. 

Locked tokens contribute to market stability by prohibiting early investors and team members from selling significant sums of tokens at once. On the other hand, a token unlock happens when these limitations are removed, enabling the usage of these tokens. Knowing these concepts can help investors better predict supply shifts and market fluctuations. 

Differences Between Token Locked and Token Unlock

Types of Crypto Locking Mechanism

Different locking mechanisms regulate token supply and prevent early sell-offs. These include:

Vesting Schedules

Vesting schedules are one of the most common token locking mechanisms. They involve gradually unlocking tokens over a fixed period to prevent early investors, team members, and advisors from dumping large amounts of tokens at once. This approach aligns incentives with the project’s long-term success.

Staking Locks

Some projects require tokens to be locked in staking contracts, restricting access until a specified period ends. This mechanism is different from regular staking, where users can typically unstake tokens at any time. Staking locks are often used in governance models to ensure network security and long-term participation.

Governance locks

Governance locks prevent token transfers for users that take part in decision-making processes within a blockchain network or decentralized autonomous organization (DAO). By locking governance tokens, projects ensure that only committed participants can vote on protocol improvements, funding allocations, and other key choices. 

Time-Locked Wallets

Time-locked wallets utilize smart contracts to keep tokens locked until a specific time or event happens. These wallets are set up to automatically distribute tokens based on predefined conditions, such as reaching a certain date, reaching funding milestones, or fulfilling a development phase. Time-locked wallets are often used for team allocations, token burns, and long-term reserves, preventing tokens from being used prematurely.

Upcoming Token Unlocks

This year, we will see significant token unlock events that could influence the broader crypto market. Investors should keep an eye on these releases to better navigate potential price swings.

Sui (SUI) Token Unlock

Next Unlock Event: April 1, 2025

Amount to be Unlocked: 80.14 million SUI

Value of Unlocked Tokens: Estimated at $213.02 million

Sui is a Layer 1 blockchain designed for quick transactions and smart contract execution. It is perfect for gaming, DeFi, and NFT applications because of its object-based paradigm, which increases scalability. Although more liquidity may encourage wider adoption with this upcoming token unlock, investors should also keep an eye out for early holders' pressure to sell. If you missed this event, don't worry because there will be additional Sui token unlocks this year that are set for release every first day of the month. You also have the option to buy locked SUI here at Acquire.Fi.

Ethena (ENA) Token Unlock

Next Unlock Event: April 2, 2025

Amount to be Unlocked: 94.19 million ENA

Value of Unlocked Tokens: Estimated at $35.77 million

Ethena focuses on decentralized synthetic assets, which enable users to hedge against volatility. This upcoming unlock, which accounts for a significant portion of circulating supply, has the potential to change ENA's market structure. Investors should be prepared for short-term price swings while assessing long-term demand for Ethena's platform. While waiting to the next unlock, you can purchase locked ENA tokens from direct sellers on Acquire.Fi.

TRUMP (TRUMP) Token Unlock

Next Unlock Event: April 18, 2025

Amount to be Unlocked: 40 million TRUMP

Value of Unlocked Tokens: Estimated at $550.79 million

According to Binance Square, TRUMP tokens are scarce because the Trump family still owns a significant share. The upcoming TRUMP token unlock will introduce substantial liquidity into the market, potentially impacting the token's price dynamics. Given the high-profile nature of the Trump-branded cryptocurrency and its speculative appeal, investor sentiment and media coverage may also play in determining price movement.

Optimism (OP) Token Unlock

Next Unlock Event: March 31, 2025

Amount to be Unlocked: 32.21 million OP

Value of Unlocked Tokens: Estimated at $33.47 million

Optimism is an important Ethereum Layer 2 scaling solution that lowers transaction costs and increases efficiency. The upcoming OP token unlock, which will be distributed among core contributors and investors, may impact staking rewards and governance participation, making it significant for anyone tracking Ethereum's scaling progress. 

Axie Infinity (AXS) Token Unlock

Next Unlock Event: April 12, 2025

Amount to be Unlocked: 10.72 million AXS

Value of Unlocked Tokens: Estimated at $39.27 million

Axie Infinity remains one of the most widely recognized play-to-earn blockchain games in the world. The upcoming AXS token unlock could encourage new player adoption or selling pressure from early investors. However, the Play to Earn and Ecosystem fund allocations will not be issued until the game is ready for a growth phase, even if the tokens are unlocked as seen on their whitepaper.

How to Find Upcoming Crypto Token Unlocks

Aside from the ones listed above, you can also track upcoming token unlocks by visiting various websites that offer comprehensive token unlock schedules and information about token events such as:

Project Whitepapers and Roadmaps

Numerous blockchain projects' whitepapers and roadmaps specify the token unlock schedule. These documents can help investors anticipate future price movements and learn about an asset's long-term supply dynamics. 

Community and Social Media Updates

Posting on social media and community channels is quicker and easier, so most projects frequently use their official accounts, Telegram communities, or Discord groups to promote token unlocks. Investors can set up notifications or check these channels regularly to stay informed of new developments or token unlock announcements.

Token Unlock Tracking Platforms

A number of websites focus on providing schedules for token unlocks. These resources provide information about the quantity of tokens that have been released and their possible effects. Token unlock schedules and data are available on the following platforms: 

CryptoRank

CryptoRank provides extensive statistics on tokenomics and token unlock events. Users can obtain comprehensive information about upcoming token unlocks to predict market fluctuations and modify their investment strategies appropriately.

CoinMarketCap

There is a specific section for token unlocks and vesting periods at CoinMarketCap. Investors can better plan their trades and investments with the help of this resource, which provides a clear timeline of upcoming unlock events.

Tokenomist

Tokenomist focuses on tracking and evaluating token release timelines across multiple projects. The tool provides real-time updates and insights, enabling investors to keep ahead of any market moves caused by token unlocks.

Is a Token Unlock Bullish or Bearish?

In certain situations, a token unlock might be bullish or bearish. A bearish trend may result from an overabundance of recently unlocked tokens flooding the market and increasing selling pressure. However, if the unlock allows for more project development, attracts new investors, or promotes staking methods, it may result in a bullish trend. Investors should analyze each case individually rather than assuming a uniform outcome.

Navigating Token Unlocks as an Investor

Knowing how to handle token unlock events can help investors reduce risks and take advantage of opportunities, but it requires meticulous preparation and research. 

Evaluating Supply and Demand Effects

Token unlocks raise the supply of cryptocurrencies in circulation, which may cause price swings. An example of this is the launch of $TRUMP memecoin in January 2025, which resulted in significant market activity. However, its value fluctuated after Melania Trump launched her own coin, $MELANIA. According to Investor's Business Daily, the $TRUMP coin initially surged but settled around $37 per token with a market cap of $7.65 billion. 

Assessing the Project's Fundamentals

Not all token unlocks result in negative price movements. A project with solid foundations, a dedicated development team, and active community participation can absorb the extra supply without causing significant interruptions.

This is what MakerDAO did when they faced a major crisis during "Black Thursday" when ETH prices crashed by 50%, causing $8.325 million in liquidations at zero DAI. To recover, MakerDAO adjusted risk parameters, improved its emergency shutdown process, and upgraded collateral auctions to prevent zero-bid scenarios. These measures strengthened the protocol’s resilience and reinforced its stability.

Timing Entry and Exit Strategies

Investors should plan their trades based on the token unlock schedule. Waiting for a better entry point could be beneficial if an unlock is expected to cause a price drop. Conversely, early positioning may be advantageous if an unlock signals project growth.

A notable example of an entry strategy occurred with Aptos (APT) in October 2023. Some investors anticipated bullish momentum due to the project's ecosystem growth before the unlock. According to BeInCrypto, investors accumulated APT at lower prices before the unlock instead of panic selling, benefiting them when the token price surged 24% post-event.

On the other hand, a well-timed exit strategy was seen in March 2024 with Arbitrum (ARB). Some investors exited their positions ahead of its $2.32 billion token unlock. As expected, ARB’s price fell sharply from $2.10 to $0.52 after the unlock, validating the cautious approach of early sellers who secured profits before the downturn.

Where to Buy or Sell Locked Tokens?

Long-term investors who believe in the blockchain project’s fundamentals can still purchase locked tokens through other means. At the Acquire.Fi OTC Secondaries marketplace, you can browse locked token offers from project team members, advisors, and early investors. With Acquire.Fi, you get access to locked tokens before the general public does and buy at a discount.