The second week of May 2025 is poised to be a significant period for the cryptocurrency market, with substantial token unlocks scheduled for Ethena (ENA), Kaspa (KAS), and Movement (MOVE). These events are anticipated to introduce considerable liquidity into the market, potentially influencing token prices and investor sentiment.
On May 5, 2025, Ethena is set to unlock 171.88 million ENA tokens, accounting for approximately 3.1% of its circulating supply. Valued at around $50 million, this release is part of Ethena’s monthly token distribution schedule, which is expected to continue until 2028.
The allocation of these tokens is primarily directed towards insiders, including team members, advisors, and contractors. Notably, 78.16 million ENA tokens are designated for a private sector investor.
Historically, ENA has experienced price volatility around token unlock events. For instance, a previous unlock in April led to a 16% price drop, underscoring the potential impact of increased token supply on market dynamics.
Kaspa plans to release 144.64 million KAS tokens on May 7, 2025, representing about 0.55% of its total circulating supply. This release, valued at over $13 million, is part of Kaspa’s linear emission schedule, which aims to gradually increase token supply over time.
Unlike ENA, KAS has demonstrated resilience in the face of token unlocks, with bullish momentum observed in recent trading sessions. Technical indicators suggest that KAS could potentially climb above $0.11, possibly reaching $0.14 if the current trend persists.
Movement is scheduled to unlock 50 million MOVE tokens on May 9, 2025, equating to approximately 2% of its total supply. This release, valued at around $8.46 million, comes amid recent controversies involving the project, including the suspension of a co-founder and issues related to market-making agreements.
The upcoming unlock could exert additional pressure on MOVE’s price, which has already experienced a decline due to recent events. However, if the newly unlocked tokens are utilized to support network growth or strategic partnerships, it could mitigate negative impacts and potentially attract investor interest.
Token unlocks are critical events that can significantly influence a cryptocurrency’s price and market dynamics. An influx of tokens into circulation can lead to increased selling pressure, potentially driving prices down if demand does not match the new supply.
Investors should closely monitor these upcoming unlocks and consider the following strategies:
- Stay Informed: Keep abreast of the latest developments related to token unlocks and understand the specific details of each event.
- Analyze Market Sentiment: Assess the broader market sentiment and how it may influence investor behavior during these periods.
- Evaluate Project Fundamentals: Consider the underlying fundamentals of each project, including their use cases, development progress, and community support.
- Risk Management: Implement appropriate risk management strategies to navigate potential volatility associated with token unlocks.
By adopting a proactive and informed approach, investors can better position themselves to respond to the market fluctuations that may arise from these significant token unlock events.