January 2026 kicks off with a massive wave of crypto token unlock events worth $657 million scheduled between January 5 and 12. Data from Tokenomist shows both cliff unlocks and linear vesting schedules hitting the market simultaneously.
Hyperliquid dominates the unlock calendar with a staggering $334 million release. Ethena, Solana, and RAIN follow with substantial unlocks of their own.
The big question on everyone’s mind: will this flood of tokens trigger a market-wide sell-off?
What’s Happening This Week?
The week brings two distinct types of crypto token unlock. Cliff unlocks sees large chunks of tokens released all at once. Linear unlocks distribute tokens gradually through daily vesting schedules.
Hyperliquid leads cliff releases with 12.46 million HYPE tokens valued at $333.99 million. Ethena follows with 171.88 million ENA tokens worth $43.03 million.
On the linear side, RAIN dominates with 9.42 billion tokens worth $75.72 million set for daily release. Solana comes next with 483,590 SOL tokens valued at $65.86 million.
These two categories combined create the $657 million total scheduled for the week.
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What is Crypto Token Unlock?
Token unlocking is the scheduled release of previously locked cryptocurrency tokens into circulation. Projects lock tokens during launch to prevent immediate dumps by early investors, team members, and advisors.
The practice protects token prices from sudden crashes. Without unlock schedules, insiders could flood exchanges with millions of tokens the day trading begins.
Most blockchain projects implement these schedules spanning months or years. Smart contracts control the releases automatically when predetermined dates arrive.
How Does Crypto Token Unlock Work?
During a project’s token generation event, developers allocate tokens to different stakeholders. These include venture capital firms, team members, advisors, and community reserves.
A smart contract manages the release schedule. When the unlock date hits, the contract automatically transfers tokens to designated wallets. Recipients then decide whether to hold, sell, or stake their tokens.
Projects publish unlock schedules in their tokenomics documentation. Tracking platforms like Tokenomist and CoinMarketCap monitor these events, giving traders advance warning.
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Types of Token Unlock: Cliff Unlock Vs. Linear Unlock
Crypto tokens unlock through two main mechanisms.
Cliff unlock releases a large batch of tokens after a waiting period. Hyperliquid’s $334 million release represents a perfect cliff unlock example. All 12.46 million tokens become available at once.
Linear unlock releases tokens over time through daily or monthly distributions. RAIN’s 9.42 billion token release happens incrementally throughout the week, not all at once.
Many projects use hybrid approaches. They combine a cliff period with subsequent linear vesting to balance immediate access against gradual distribution.
Hyperliquid Leads Token Unlock Schedule with $333.99 Million Release
Hyperliquid (HYPE) tops the week’s cliff unlock schedule. The 12.46 million tokens valued at $333.99 million represent 3.25% of the project’s adjusted released supply.
This single unlock accounts for over half of the entire week’s total value. The percentage seems manageable at just 3.25%, but the dollar value creates serious market pressure.
Hyperliquid has gained significant traction in decentralized derivatives trading. Strong fundamentals might help absorb the sell pressure, but the sheer size remains concerning.
Ethena and Aptos Round Out Major Cliff Unlocks
Ethena (ENA) has 171.88 million tokens worth $43.03 million scheduled for release. The unlock comprises 2.37% of ENA’s adjusted released supply.
Together, Hyperliquid and Ethena account for $377.02 million in crypto token unlock events. That’s 57.4% of the total weekly value from just two projects.
Aptos (APT) releases 12.44 million tokens valued at $24.38 million. The unlock represents only 0.77% of APT’s adjusted released supply, making it the smallest percentage among major cliff releases.
Linea (LINEA) faces an unlock of 1.38 billion tokens worth $10.40 million. The release represents 6.34% of LINEA’s adjusted released supply, the largest unlock by percentage among the five major cliff releases.
MOVE completes the major cliff unlocks with 164.58 million tokens valued at $6.24 million. The release accounts for 5.77% of MOVE’s adjusted released supply.
Combined cliff unlock value reaches nearly $418 million across these five projects alone.
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Linear Token Unlocks Add $239M in Weekly Releases
RAIN leads all linear unlocks with 9.42 billion tokens valued at $75.72 million set for daily release. This represents the largest linear release by dollar value and accounts for 31.7% of total linear unlock value.
Solana (SOL) follows with 483,590 tokens worth $65.86 million scheduled for gradual release. These two projects combined account for $141.58 million, comprising 59.3% of total linear unlock value.
TRUMP has 4.89 million tokens valued at $26.60 million scheduled for linear release. Worldcoin (WLD) will release 37.23 million tokens worth $22.50 million through daily vesting.
River (RIVER) has 1.25 million tokens worth $16.09 million set for gradual release. Dogecoin will unlock 95.94 million tokens worth $14.51 million throughout the week.
Avalanche releases 700,000 tokens through linear vesting valued at $10.06 million. Aster completes the linear schedule with 10.28 million tokens worth $8.14 million.
Linear crypto token unlock events totaling approximately $239 million across eight projects.
Why is Token Unlocking Important?
Supply and demand determine cryptocurrency prices. When the token is unlocked, the circulating supply increases. More tokens available typically creates downward price pressure, especially if recipients sell immediately.
Early investors who bought at steep discounts often take profits after the unlock periods end. Venture capital firms might diversify their portfolios. Team members could cash out after years of holding.
These events force quick decisions from market participants. Traders monitor unlock calendars closely because large releases trigger increased volatility.
The Hyperliquid unlock alone could significantly impact HYPE’s price. A $334 million release into a market with limited liquidity creates obvious risks.
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Disadvantages of Token Unlocking
Price dumping represents the biggest concern. When hundreds of millions in tokens hit exchanges simultaneously, sellers overwhelm buyers.
Several high-profile projects saw 20-30% drops within days of major unlocks in 2024. Retail investors bore the brunt of these selloffs.
Timing rarely favors those who bought during peak hype. Early investors exit at profits while later buyers watch their portfolios shrink.
Community sentiment suffers too. Nothing damages confidence like team members or VCs selling allocations immediately after unlock.
Difference between Token Unlock and Vesting
These terms often get confused but represent distinct concepts.
Vesting describes the overall schedule and conditions for earning token ownership rights. It’s the complete timeline from initial allocation to full ownership.
Unlocking marks the specific moment tokens become accessible. It’s one event within the broader vesting schedule.
Example: A team member might have a three-year vesting schedule with a one-year cliff. After the cliff period, the token unlocks monthly. Vesting describes the entire three years. Unlocking happens each month during years two and three.
Smaller Projects Face Major Percentage Unlocks
Beyond the headline numbers, smaller projects face significant percentage-based releases.
CUDIS will unlock 12.19 million tokens worth $365,249, representing 1.22% of total locked tokens. Infinity Ground (AIN) releases 18.13 million tokens valued at $954,166, equal to 1.81% of locked supply.
ROA CORE has 16.96 million tokens scheduled worth $111,059, representing 1.70% of locked tokens. Animalia (ANIM) unlocks 2.37 million tokens worth $2,298, or 2.18% of total locked supply.
Ultiverse releases 166.67 million tokens valued at $61,541, making up 1.67% of locked tokens.
While dollar values seem small, these percentage unlocks can devastate lower liquidity tokens.
What Should Investors Do?
This week’s crypto token unlock events create genuine uncertainty. Historical data shows mixed results depending on project fundamentals and market conditions.
Check who’s receiving tokens and their likely behavior. Venture capital firms might hold longer than retail investors. Team members committed long-term probably won’t dump everything immediately.
Overall market conditions matter enormously. A bullish market absorbs sell pressure more easily than a bearish one. Current sentiment around each specific project also plays a role.
Consider reducing exposure before major unlocks if you hold affected tokens. You can always buy back cheaper if anticipated dumps materialize.
Set price alerts around January 5-12 to catch sudden movements. Platforms like Tokenomist and CoinMarketCap provide real-time unlock tracking.
What is Token Unlock?
Token unlock is when previously locked cryptocurrency tokens become available for circulation and trading. Projects lock tokens at launch to prevent immediate selling by early investors, team members, and advisors.
Where can I track token unlocks today?
Tokenomist provides the most comprehensive unlock calendar with exact dates and values. CoinMarketCap also lists upcoming events. Most project websites publish unlock schedules in their tokenomics documentation.
How does the token unlock affect the price?
Unlocks increase circulating supply, typically creating downward price pressure. The impact depends on unlock size, recipient behavior, project fundamentals, and overall market conditions. Large cliff unlocks to early investors usually cause more selling pressure.
Is token unlocking good or bad?
Neither inherently. Unlocks are neutral events built into project tokenomics. They become problematic when projects have weak fundamentals or recipients immediately dump holdings. Strong projects with genuine utility absorb unlock events without major disruption.
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