Token unlocks this week exceed $572 million, with HYPE accounting for $317 million as the majority.

In the next seven days, over $572 million worth of crypto tokens will enter the market, with Hyperliquid (HYPE) unlocking $317 million on March 6, accounting for nearly 55% of this week’s total token unlocks. Additionally, RedStone (RED) and Ethena (ENA) also completed their unlocks earlier this week, potentially increasing market liquidity due to the influx of new supply from these three major projects.

Deep Dive into This Week’s Top 3 Token Unlocks

Hyperliquid (HYPE) — March 6, $317 million

(Source: Tokenomist)

Hyperliquid is a leading decentralized perpetual futures exchange built on its own Layer-1 blockchain, known for low latency, on-chain order books, and sub-second trade confirmations. On March 6, 9.92 million HYPE tokens will be unlocked, valued at approximately $316.64 million at current market prices, representing 2.72% of the current circulating supply (405.4 million tokens). All tokens are allocated to core contributors.

RedStone (RED) — March 6, $6.04 million

(Source: Tokenomist)

RedStone is a modular blockchain oracle protocol providing real-time external data for multi-chain smart contracts and DeFi applications. On March 6, 40.85 million RED tokens will be unlocked, worth about $6.04 million, accounting for 16.13% of the circulating supply (253.25 million tokens). This is the highest unlock ratio among the three projects, with allocations as follows:

• Early supporters: 26.42 million RED
• Core contributors: 5.56 million RED
• Ecosystem and data providers: 5.54 million RED
• Protocol development: 3.33 million RED

Ethena (ENA) — March 2, $4.21 million

(Source: Tokenomist)

Ethena is an Ethereum-based synthetic dollar protocol, with its flagship product being the synthetic stablecoin USDe. ENA is its governance token. On March 2, 40.63 million ENA tokens were released through a phased unlock plan, valued at approximately $4.21 million, representing 0.53% of the total circulating supply (7.62 billion tokens). All tokens were allocated to the foundation, making this the lowest unlock ratio and the most moderate impact among the three.

Market Impact and Risk Assessment

This week’s token unlocks are dominated by HYPE. The $317 million unlock could exert significant downward pressure on HYPE’s spot price if core contributors choose to sell; however, if holders continue to hold or reinvest into the ecosystem, the impact may be limited.

Although RED’s unlock amount is smaller ($6.04 million), its high unlock ratio of 16.13% of circulating supply could also pose risks, especially in a market with low liquidity. ENA’s unlock, at only 0.53% of circulating supply and entirely allocated to the foundation rather than individual holders, is expected to have the least market selling pressure.

It’s important to note that these token unlocks occur amid a macro environment of escalating tensions in the Middle East. In a context of already fragile risk sentiment, large-scale unlocks could amplify selling tendencies among holders, potentially increasing overall volatility. Besides the three main projects, Staika (STIK), Spectral (SPEC), and IOTA (IOTA) will also introduce new supply in the first week of March.

Frequently Asked Questions

How do token unlocks affect the market?

Token unlocks release new supply into the market. If recipients (such as core contributors or early supporters) choose to sell, it can increase selling pressure and potentially lead to short-term price declines. Conversely, if holders continue to hold or reinvest into the ecosystem, the impact is more limited. The higher the unlock ratio relative to circulating supply, the greater the potential market pressure.

Which of the three unlocks this week has the biggest impact?

In terms of absolute value, HYPE’s $317 million unlock is the largest potential impact this week. In terms of unlock ratio relative to circulating supply, RED’s 16.13% is the highest and could exert more significant pressure on RED’s spot price, especially in a low-liquidity environment. This warrants close monitoring.

Should we be concerned about ENA’s unlock this time?

Since ENA’s unlock accounts for only 0.53% of circulating supply and is fully allocated to the foundation rather than individual holders, the market selling pressure is expected to be minimal. The impact on ENA’s spot market should be relatively mild.