The cryptocurrency market is getting a serious jolt from some big token unlock events, with certain projects set to unleash a hefty chunk of their circulating supply into the market. One of the most remarkable unlock situations stems from Ethena Labs ($ENA), which is primed to drop a jaw-dropping $718 million worth of tokens — nearly 66% of its total market capitalization. That being the case, the potential impact on the token’s price and its market sentiment could be nothing short of profound. Investors are watching this situation unfold closely. Unlock events are always a crucial moment for project teams and investors, as they can lead to increased short-term volatility. Large token unlocks have sometimes pushed a project’s price down, as early investors and core team members have exited trades. In contrast, token unlocks have also served as a launch moment as project teams and core contributors power through a bear market with their continued confidence and audacity. Ethena’s upcoming unlock could do anything from being a price dive moment to being a non-event to being the next moment of upward price action. The $ENA Unlock: A Critical Moment for Ethena Labs Ethena Labs ($ENA), which is now in the process of unlocking 65.3% of its market cap, is winning a lot of friends as it looks to be at the forefront of the next wave of token releases. Some $718 million worth of $ENA tokens are due to be unlocked, making this one of the largest events in recent memory for the project itself. This large-scale unlocking is going to impact Ethena’s investors and core contributors most of all, as they have held their tokens for nearly a year in anticipation of the event. These token releases might significantly affect $ENA’s price. Right now, $ENA languishes 75% down from its last swing high, which seems to be keeping long-term holders from selling. But we’re not so sure what’s going on with the insiders and early investors. Will they unload their token haul in the wake of the unlocking event? If they do, we could see the price head south. And if they don’t… or if we get a nice little rebound in $ENA… could we see the price run up in the near term? Even with these obstacles, there is still a chance for the value of $ENA to go back up, especially if demand increases. As the unlock event moves forward and more tokens become available for trading, it will be very important for Ethena Labs to keep market confidence high and not let the price keep declining for a long time. There might be some way to avoid a situation where price momentum going upward after the unlock is also re-established following what might be a somewhat expected price event resuming downward just after the unlock with some new sort of price momentum. If some positive news events should happen—if some nice developments or partnerships should occur in the near future—those could help ease the situation somewhat. Other Token Unlocks to Watch While the center stage is occupied by the $ENA unlock, several other tokens are also moving close to their unlock events. This could add more to the market fluctuations we are already experiencing. Here are some of the more notable token unlocks coming up and the effects they are expected to have on the market. Kaspa ($KAS): Kaspa’s much smaller unlock of $12.23 million (0.63% of its circulating supply) is likely to lead to less immediate volatility compared with $ENA. Still, we have to recognize that KAS is becoming rather popular due to its speed and scalability, features that could well help it avoid nasty sell-offs right after the unlock. – MOVE ($MOVE): MOVE, with $19.9 million (2.08% of circulating supply) unlocking, is another token to watch. While the percentage of total supply being unlocked is relatively small, any large transactions could still lead to brief price fluctuations. Aptos ($APT): Aptos ($APT) is preparing to unlock $61.86 million worth of tokens, amounting to 1.92% of its circulating supply. Aptos has solid institutional backing and innovative technology at its core, which should lend it some stability as its development ecosystem continues its growth after this unlock. – Strike Protocol ($STRK): The release of $11.98 million worth of $STRK tokens (2.33% of its circulating supply) is also significant, but the potential impact may be limited compared to larger unlock events. – Sei Network ($SEI): Unlocking of $12.04 million (1.19% of circulating supply) will likely have more moderate effects on its market. Reason: Project appears to be in early stages of adoption. – Arbitrum ($ARB): Lastly, Arbitrum’s unlock event will likely be a key focus for investors, momentous in that it will release tokens totaling $34.87 million (2.10% of circulating supply) into the hands of investors, who will then presumably do something with those tokens. Nearest noticeable token unlocks (% of circ. supply) #ENA – $725.92m – 66.19% #KAS – $12.23m – 0.63% #MOVE – $19.9m – 2.08% #APT – $61.86m – 1.92% #STRK – $11.98m – 2.33% #SEI – $12.04m – 1.19% #ARB – $34.87m – 2.10% Ethena probably gonna do a… pic.twitter.com/VNb6pQ5Ahj — Zen (@WiseAnalyze) March 4, 2025 Strategic Decisions and Market Impact Unlocking $ENA and other tokens represents a critical inflection point for the markets surrounding them. The immediate aftermath tends to lead to volatility, but these items also represent a chance for the projects involved to show that they deserve to be considered long-term holds. Ethena Labs is attempting to build something durable on top of (and partially funded by) the Ethereum blockchain. If the team can execute and maintain a strong enough hand during the post-unlock period that the unlocked tokens don’t end up just getting sold off, they could start earning some of that staying power. Keeping an eye on unlock events is important for investors because they can signal moves in market sentiment and potentially serve up some opportunities for strategic trades. Yes, sometimes the unlocks lead to short-term sell-offs. We’ve seen that happen. But in many cases, what’s going on with a token is a prelude to something much bigger—project evolution, development, and the building of stronger ecosystems that might yield some rewards in the long term. To sum up, the imminent unlock events — especially the major release of $ENA tokens — are likely to influence market dynamics in the short term. Observing how these events play out will be essential for investors and project teams alike as they attempt to ride the inevitable volatility and convert it into opportunity for sustained, long-term growth. These next few weeks are undoubtedly a make-or-break time for these currencies, as they face the certainties and uncertainties that come with such a large-scale token unlock. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: andreysuslov/ 123RF / Image Effects by Colorcinch
