Token Unlock Analysis: AVAX, APT, IMX, and SUI in February 2024

• Crypto token unlocks are important to the general liquidity of the respective altcoins but tend to increase the general selling pressure as early investors rush to take profits.
• The upcoming token unlocks coincide with an anticipated altcoin season as Bitcoin price enters a consolidation phase following the approval of spot ETFs in the United States.

In the next four weeks, several altcoin projects will be conducting their scheduled token unlocks for the early investors who held through the respective vesting periods. As for the Immutable (IMX) project, a fast-growing layer two scaling solution on the Ethereum network, it is expected to release 1.22 million IMX worth approximately $2.37 million per day for 28 days beginning on February 23.

As for the Sui (SUI) layer one blockchain, early investors anticipate unlocking around 34.62 SUI coins worth approximately $53.64 million on February 3. The Aptos (APT) network, a layer one proof-of-stake blockchain focused on democratizing smart contracts, expects to unlock approximately 24.84 million APT worth about $221 million on February 11, which will represent around 7.35 percent of the total tokens in circulating supply.

The Avalanche (AVAX) network is expected to conduct the largest token unlock in February amounting to around 9.54 million AVAX worth about $320 million.

Market Implication of the Upcoming Token Unlocks

The notable token unlocks scheduled for February have coincided with an anticipated altcoin season amid the ongoing crypto cash rotation. Conventionally, crypto token releases have triggered mixed reactions in the respective communities as it is mostly perceived as a fresh source of selling pressure.

Moreover, early investors often take advantage of the token unlocks to take profits if the underlying price is higher than the initial investments. On the other hand, less selling pressure is registered if the unlocked token trades below the initial investment value. 

Avalanche (AVAX)

Avalanche (AVAX) layer one blockchain has grown to a mature ecosystem with about $810 million in Total Value Locked (TVL) and over $1 billion in the stablecoins market capitalization. From a technical outlook, AVAX price is preparing for the second phase of a macro bullish outlook after a successful rebound from a weekly correction. After closing the past two weeks in a Marubozu candlestick pattern, AVAX’s price is well positioned to rally above the resistance level of around $45 in the coming weeks.

Aptos (APT)

Similarly, Aptos (APT) has been preparing to rally toward its all-time high following a successful rebound from the crypto bear market lows. Trading around $9.33 on Friday, APT’s bullish outlook is well bolstered by the notable network development. Furthermore, the Aptos network has a vibrant web3 ecosystem with more than $155 million in TVL and around $69 million in stablecoins valuation.

Immutable (IMX)

The Immutable (IMX) network is a fast-growing Ethereum-based layer two scaling solution with about $36 million in TVL and $3 billion in stablecoins market cap. The mid-cap altcoin has risen nearly 20 percent in the past week to trade around $2.2 on Friday. The demand for IMX has been rising exponentially with its daily trading volume up around 79 percent to about $114 million. If the altcoin rallies above the next major IMX price target is around $2.8, then its all-time high will be on the horizon.

Sui (SUI)

Sui (SUI) network has registered significant strides as a layer one ecosystem with more than $457 million in TVL and $5 million in stablecoins market cap. Already, the mid-cap altcoin is on a bull rally after recently reaching a new all-time high. With the weekly Relative Strength Index (RSI) attempting to rally above the 70 level, more gains in the SUI network are expected in the near term.