The period from January 11-20, 2025 is expected to witness great selling pressure as a series of large projects proceed to unlock tokens, with a total value of more than 600 million USD. Among them, Arbitrum (ARB) and Aptos (APT) are two prominent names, capable of strongly influencing the market.
ARB and APT Token Unlock Details
Aptos (APT) – January 12, 2025
• Number of unlocked tokens: 11.31 million tokens.
• Unlock value: 104.2 million USD.
• Ratio to circulating supply: 2.03%.
• Impact: As a potential Layer 1 project, the large token unlock may create short-term selling pressure, especially when investors seek to take profits in a volatile market.
Arbitrum ($ARB ) – January 16, 2025
• Number of unlocks: 92.65 million tokens.
• Unlock value: 70.9 million USD.
• Ratio to circulating supply: 2.2%.
• Impact: This prominent Layer 2 project also faces the risk of price declines when supply suddenly increases. The psychological effect of unlocking could push ARB into a zone of strong volatility.
Potential Hidden Risks
1. Increased Selling Pressure:
With a large total unlock value from both ARB and APT, the market may face a sell-off, creating an imbalance in supply and demand.
2. Spread Negative Effects:
Simultaneous token unlocks can easily create a chain reaction, affecting other related assets in the same ecosystem.
3. Short-Term Price Volatility:
Tokens that account for a large portion of circulating supply are often more sensitive to unlock events, easily creating strong price fluctuations.
Investor Response Strategies
1. Monitor Unlock Schedule:
Regularly update unlock timelines to make timely decisions.
2. Project Analysis:
Evaluate the sustainability and long-term development strategy of projects before deciding to invest.
3. Limit FOMO:
Do not get swept up in crowd psychology, focus on long-term goals instead of reacting to short-term fluctuations.
4. Diversify Portfolio:
Avoid focusing on tokens with a high unlock ratio to minimize risk.
Conclusion
The token unlock events of ARB and APT in January 2025 present both opportunities and risks. Investors need to be prepared for strong fluctuations and manage risks carefully. Understanding the nature of unlock events and maintaining a solid investment strategy will help you navigate these periods of market instability.
