CandleFocus

The Mystery of Unlocked Tokens: Why Aren’t They Circulating?

Author: Content Editor
Token Unlocks, a tokenomics insights platform, analyzed how the percentage of unlocked tokens affects the circulating supply of various cryptocurrencies. They found that higher token unlock percentages do not necessarily mean that tokens are immediately circulating. Some tokens, like 1INCH, had a small difference between unlocked tokens and circulating supply, while others, like AAVE, had a higher difference due to factors like staking or burning mechanisms. Tokens such as AEVO and ALGO showed even larger gaps, suggesting unique liquidity dynamics or token distribution strategies. The analysis also revealed that a significant percentage of unlocked tokens are often locked away from circulation, as seen with the FXS token. Understanding circulating supply is important for crypto investors as it affects market capitalization and token value. Factors such as controlled token releases and vesting schedules can cause temporary gaps between unlocked and circulating tokens, impacting liquidity and price movement.

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