The crypto market will witness a total cliff unlock of $257 million next week. Next week's main highlights will be ARB and ID, with combined unlocks reaching $139 million. Cardano plans to add $41 million to its circulating supply from Monday to Friday.
Tokenomist data on Friday highlighted the various tokens involved in next week’s $257 million cliff unlock led by Arbitrum (ARB), Space ID (ID), and Cardano (ADA).
Crypto market set to unlock $257 million next week
Tokenomics insights platform Tokenomist.ai has released its weekly Cliff Unlock data, revealing a $257 million supply increase scheduled to enter the market next week.
A cliff unlock is an event where a project releases tokens to investors, community members, or advisors. If demand cannot keep up with new supply, the increased supply will often cause the price of the token to fall.
Tokens involved include Arbitrum (ARB), Space ID (ID), Cardano (ADA), Apecoin (APE), Ethena (ENA), Pixels (PIXEL), Echelon Prime (PRIME), and EigenLayer (EIGEN). Masu.
Arbitrum unlocks the maximum amount, adding $96 million worth of tokens to the circulating supply. The Layer 2 token is currently down 3%, with weekly losses exceeding 14%.
Space ID’s network token ID is scheduled to release 13% of its current supply next week after consistently declining over the past week. The token has fallen over 4% in the past 24 hours, with weekly losses jumping nearly 20%.
The impact of increased supply can lead to further price declines, a tendency that tokens often experience after adding supply.
Meanwhile, Cardano will increase its supply twice next week, adding $20 million and $21 million worth of ADA into circulation on Monday and Friday, respectively.
ADA has already unlocked 85% of its tokens and has been consistently adding 0.05% of its supply to the market over the past few weeks. The token is currently down more than 3% after the foundation's X account was recently hacked and malicious actors created several fake posts on the page.
This included posts suggesting the foundation had received a Wells Notice from the Securities and Exchange Commission, as well as other posts promoting fake tokens.
However, the foundation assured the community on Friday that it had regained control of the account.
Other tokens expected to see an increase in supply include APE, ENA, PIXEL, and PRIME, which will add $25 million, $13 million, $13 million, and $11 million worth of tokens into circulation, respectively.
