The cryptocurrency sector is abuzz with anticipation as three major projects– StarkNet (STRK), TRUMP, and Polyhedra Network (ZKJ)– gear up for significant token unlocks this week.
Both TRUMP and Polyhedra are set to unlock tokens constituting more than 20% of their respective market caps. On April 18, the OFFICIAL TRUMP meme coin, named after the US President Donald Trump, is scheduled to unlock 40 million TRUMP tokens, which represent 4.00% of its Max Supply. These tokens carry a combined market value of a staggering $338.57 million.
Out of this figure, 10% of the tokens, amounting to 36 million, are earmarked for Creators & CIC Digital 1, with the remaining 10% or 4 million tokens allocated to Creators & CIC Digital 4. Given the sizeable quantum of tokens slated for release, market volatility is expected to be impacted. The TRUMP token has already witnessed a decline of over 30% this month, adding to the air of uncertainty.
Meanwhile, StarkNet, an Ethereum Layer 2 scaling solution that employs STARK-based zero-knowledge rollups to enhance throughput and minimize gas costs, will unlock 127.60 million STRK tokens on April 15. These tokens, which make up 1.28% of Max Supply, represent approximately $16.71 million in value or 4.40% of the current market cap. Early contributors and investors are set to receive 66.92 million and 60.68 million tokens, respectively. STRK has been on a downward spiral, declining over 26% over the past month and nearly 100% from its all-time high in February 2024.
The last of the three, Polyhedra Network, is set to unlock 15.50 million ZKJ tokens on April 19. The network, which facilitates blockchain interoperability via its zkBridge technology, has assigned 8.47 million tokens for ecosystem and network incentives, 2.61 million tokens for community, airdrop, and marketing, 3.61 million tokens for foundation reserves, and 800,000 tokens for pre-TGE token purchasers. Despite the upcoming unlock, ZKJ has shown a positive 10% increase over the past month.
Collectively, these unlocks will inject over $400 million worth of new tokens into the market. While some projects like TRUMP and STRK are facing downward pressure, others like ZKJ are demonstrating positive momentum. Given the potential shifts in market sentiment and liquidity, traders are advised to closely monitor token distribution.
