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This week, we can expect the implementation of unlocks for three significant tokens: the Liquid staking protocol Lido (LDO), the native token of the Avalanche Blockchain (AVAX), and the token associated with the Yield Guild Games DAO (YGG). As a result, there will be an influx of these tokens into the market, expanding their overall supply.

Token unlocks involve gradually releasing coins that were previously held in frozen accounts, aimed at preventing early investors or project team members from rapidly selling off their large holdings.

Lido DAO (LDO) Unlock

The forthcoming event on August 26th involves the release of 8.5 million LDO tokens, the governance tokens of the liquid staking platform Lido. This allocation holds a value of approximately $14.2 million and represents approximately 0.97% of the total token supply.

 

A total of 8.5 million tokens will be allocated to investors who currently possess over 300 million tokens, as stated by TokenUnlocks.

According to data from CoinCryptoUs, Lido's LDO token experienced a 8.5% decline over the past week, and has shown a relatively steady performance in the last 24 hours.

Avalanche Token (AVAX) Unlock

AVAX, the inherent cryptocurrency of the Avalanche blockchain, is set to undergo an unlocking event on Saturday, August 26th. During this event, approximately 9.54 million AVAX tokens will be introduced into circulation, representing a value of around $102.86 million. This release constitutes approximately 2.77% of the entire circulating supply of AVAX tokens.

(token.unlocks.app)

AVAX's most recent unlock occurred in May and was met with a favorable response from the market.

“Token unlocks freak people out in general, but the upcoming Avalanche unlock has been mapped out for a while now and most sophisticated actors have adjusted for it,” Lindsey Winder, CEO of token infrastructure firm Hedgey Finance, said to CoinDesk in May.

AVAX's unlocking will be distributed among various entities. Strategic partners will receive 2.25 million tokens, equivalent to $24.21 million in value. The Foundation is set to acquire 1.67 million tokens, while the team will be allocated 4.5 million tokens, valued at $48.42 million. Additionally, airdrop participants will be granted 1.13 million tokens.

AVAX has experienced a 13% decline over the past week, as reported by CoinDesk's market data. Additionally, it is showing a 1.8% decrease within the current day.

Yield Guild Games (YGG) Token Unlock

The widespread adoption of blockchain-based gaming has faced challenges, and this is clearly evident in the performance of Yield Guild Games, a significant investor in GameFi's DAO token.

Market statistics indicate that YGG's token has experienced a substantial decline of approximately 59% over the past year, even though there was a temporary surge of 49% during the last month. Unfortunately, in the preceding week, it suffered an additional loss of 30% in its value, resulting in a 2% decrease on the current day.

On Sunday, YGG has plans to unleash 12.2 million YGG tokens (equivalent to $2.87 million), constituting approximately 6.6% of the total circulating supply of this cryptocurrency. At present, around 30% of the token's overall supply has been made accessible.

(token.unlocks.app)

Token Unlocks and Market Prices

To what extent do unlocked features influence market prices?

The answer is complicated.

While commonly perceived as having a pessimistic impact, the intricate influence of token unlocks on market trends presents a more nuanced picture, as highlighted by CoinDesk's report in July.

Analyzed by The Tie, a data analytics company, a study of over 350,000 unlocking events revealed that, on average, cryptocurrencies experienced a decline in value prior to the occurrence of these events.

Nevertheless, as the released liquidity exceeded 100% of the average daily trading volume, prices promptly recovered before experiencing another decline within a span of two weeks.

This pattern implies that holders could delay their sales in the market, potentially due to the initial relief stemming from the market not being inundated with a wave of new tokens.