The cryptocurrency market is bracing for a significant event in August 2024, as nearly $1.5 billion worth of tokens from major crypto projects are set to be unlocked. Among these, the XRP August Crypto Unlocks are grabbing the most attention, with Ripple unlocking 1 billion XRP tokens worth $609 million. This event is part of Ripple’s ongoing practice since 2017, where it releases a substantial portion of its tokens at the start of each month.
The Ripple Effect: XRP August Crypto Unlocks
The XRP August Crypto Unlocks have been a regular occurrence since 2017, with Ripple utilizing its main escrow wallets to evenly split the monthly unlocks. The firm behind the XRP Ledger blockchain often re-locks a significant portion of these tokens. For instance, in June, Ripple re-locked 800 million XRP but still sold around 300 million XRP, worth $182 million at the time, according to TradingView.
While up to 1 billion XRP tokens are unlocked at the start of each month, the actual amount of XRP that would be released into circulation is “likely much less than this” due to a re-escrow process, wrote XRP Ledger in a 2017 blog post. This practice ensures that the market isn’t flooded with too many tokens at once, which could potentially destabilize prices.
Avalanche and Wormhole: Major Players in Token Unlocks
Aside from the XRP August Crypto Unlocks, other significant token unlocks include those from Avalanche and Wormhole. These two projects will release a combined $449 million worth of tokens. On August 3, Wormhole will unlock 600 million tokens, amounting to 33.3% of its circulating supply and valued at $180.5 million. This follows Wormhole’s long-awaited airdrop launch on April 4.
On August 20, Avalanche will unlock 9.4 million tokens, equating to 2.4% of its circulating supply, with a current market value of $268 million. These unlocks are part of a broader strategy to increase liquidity and provide more tokens for various uses within their ecosystems.
Sui, dYdX, and ZetaChain Join the Fray
On the first day of August, several other projects will also participate in the massive token unlock event, joining the XRP August Crypto Unlocks. Sui will release 64 million tokens, worth $50 million, representing 2.56% of its circulating supply. This unlock is part of Sui’s ongoing efforts to enhance its network and provide more tokens for users and investors.
dYdX will unlock 8.33 million tokens, nearly $11 million in value, accounting for 3.65% of its circulating supply. Notably, these tokens will be distributed among investors, founders, staff, and future employees, aiming to bolster the decentralized exchange’s operations and growth.
Meanwhile, ZetaChain will unlock 53.9 million tokens, valued at $34.5 million, amounting to 18.9% of its circulating supply. ZetaChain, a new layer-1 network that launched in February, aims to use this unlock to drive further adoption and development of its blockchain platform.
Other Notable Unlocks in August
Beyond the XRP August Crypto Unlocks and the aforementioned projects, several other notable token unlocks are scheduled throughout August. On August 9, ImmutableX will release 32.5 million tokens, worth $49 million, representing 2.11% of its circulating supply. This unlock is part of the crypto gaming network’s strategy to provide more tokens for its growing ecosystem.
Aptos, a rival layer-1 network to Sui, will unlock $80 million worth of its native Aptos (APT) token on August 12. Following closely, The Sandbox will unlock $69 million worth of its native tokens on August 14, contributing to the broader trend of increasing token liquidity in the market.
Ethereum layer-2 networks Starknet and Arbitrum are also set to release tokens. On August 15, Starknet will unlock 64 million tokens, worth $35 million, amounting to 4.4% of its circulating supply. Arbitrum will release 92.6 million tokens valued at $67 million the following day, representing 2.8% of its circulating supply. These releases are part of ongoing efforts to enhance network capabilities and drive further adoption.
Conclusion: A Pivotal Month for Crypto Markets
The XRP August Crypto Unlocks, along with those from other major projects, mark a pivotal month for the cryptocurrency market. As nearly $1.5 billion in tokens are set to be unlocked, investors and market participants will be closely watching to see how these events impact prices and market dynamics. With significant amounts of tokens being released, the potential for increased liquidity and volatility is high, making August a month to watch in the crypto world.
