Crypto markets are entering April with a notable rise in token supply.

In the first week alone, over $643 million worth of tokens are set to be unlocked, mainly from Hyperliquid (HYPE), Sui (SUI), and Ethena (ENA). The increase in circulating tokens could influence prices, depending on how investors react—whether they choose to hold or sell.

Hyperliquid Tops the List

On April 6, Hyperliquid plans to unlock 9.92 million HYPE tokens, valued around $375 million. This amounts to about 2.66% of its circulating supply. These tokens are allocated to core contributors, which means there is a chance some may be sold. Even if not all tokens enter the market at once, traders will likely monitor the situation closely.

Sui’s Monthly Token Release

Sui will release 42.94 million SUI tokens on April 1, representing roughly 1.10% of its circulating supply. This follows its usual monthly schedule.

The distribution breaks down as follows:

- Series B investors: 19.32 million

- Community reserve: 12.63 million

- Early contributors: 8.93 million

- Mysten Labs: 2.07 million

Because these unlocks are anticipated, the market might have already factored some of it in. Still, tokens allocated to investors could lead to selling pressure.

Ethena Adds to the Supply

Ethena will unlock 40.63 million ENA tokens on April 2, about 0.52% of its circulating supply. Most tokens will go to the foundation, which might limit immediate selling but contributes to the growing supply.

Other Tokens Also Unlocking

Projects like Gunz (GUN), EigenCloud (EIGEN), and Opinion (OPN) will have token unlocks during this period, further increasing the total supply.

Market Implications

When token supply rises without a matching increase in demand, prices often come under pressure. This effect gains importance now, as the overall sentiment in the market remains uncertain.

Traders will be paying attention to whether prices fall before unlock dates, if tokens get sold after unlocking, and how well the market can absorb the new tokens.

In Summary

This batch of token unlocks poses a short-term challenge for the market. If demand holds steady, prices could remain stable. Otherwise, some altcoins might experience higher volatility and downward pressure.

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