Unlocking tokens in crypto: why it matters for investors

From October 2024 to January 2025, nearly $15 billion unlocked tokens will enter the market. For the uninitiated, this might seem like a daunting figure, but come on, let's break down what is actually happening here.

What does this even mean?

When a project is launched, not all tokens immediately enter the market. The development team, early investors, and founders usually receive tokens in “frozen” — vesting. This serves as a quality guarantee for the rest of the market: if everyone is given tokens at once, these people could sell everything immediately and crash the price. Therefore, a unlocking schedule is established.

Two main types:

Linear Unlocking - tokens are released gradually, for example, 5% per month over 20 months.

Cliff (click) — a large batch will be unlocked simultaneously after a specified period. This is a more aggressive option.

How does it affect the price?

When large volumes are unlocked (especially in the form of cliffs), a lot of new sellers suddenly appear. If demand is insufficient, the price falls. That is why professional traders monitor unlock charts — it is one of the key indicators for predicting short fluctuations.

How to track?

You don't need to dig into the blockchain manually. Specialized services like Token Unlock or Cryptorank show the entire schedule, amounts in dollars, and even the percentage of circulating supply. Ask there, study the charts before making large positions — this is the basic level of analysis.