- Ethena and Movement are set to unlock $58 million worth of tokens this week, sparking fears of increased market volatility and potential price drops.
- These cliff unlocks could flood the market with supply, especially if early holders choose to sell.
The cryptocurrency landscape is set for increased volatility as two prominent altcoins, Ethena (ENA) and Movement (MOVE), are preparing for significant token unlock events, totaling $58 million. The unlocks, slated to occur between Monday and May 12, 2025, could shake up the market, creating turbulence for investors and raising concerns over potential price drops.
Ethena is poised to release 171.88 million tokens, representing approximately 3.1% of its circulating supply, worth an estimated $49.52 million. Meanwhile, Movement is unlocking 50 million tokens, valued at about $8.45 million, accounting for 2% of its circulating supply. Combined, these two cliff unlocks will inject a substantial $58 million into the market, which could lead to increased liquidity, and possibly, heightened volatility.
Also read: Bitcoin ETFs Attract $1.8 Billion Inflows, Surpassing Gold ETFs Amid Market Shift
Historically, token unlocks, especially of this size, have been known to spur price fluctuations. Early investors or team members holding large amounts of tokens may choose to cash out, flooding the market and adding bearish pressure. For instance, in a prior unlock earlier this year, Ethena’s price plummeted by 18% in just 24 hours following a much larger release of tokens. Although the upcoming unlock is smaller in scale, it still holds the potential to create instability, especially if demand fails to absorb the newly released supply.
Movement, which is still relatively new in the ecosystem, faces its own challenges. The release of 50 million tokens may lead to increased selling pressure, particularly after the recent announcement that Coinbase will delist the token on May 15. This news has already sent Movement’s price down by 20%, with market capitalization dropping below $500 million. The looming unlock, combined with the ongoing concerns over market manipulation allegations surrounding Movement Labs, could further dampen investor sentiment.
As the crypto market continues its broad sideways trend, investors are keeping a close watch on the US-China economic negotiations, which may ease tensions and impact risk assets like Bitcoin. But with significant unlocks on the horizon, volatility appears inevitable for Ethena and Movement in the coming days.
