Solana Set for $340 Million Token Unlock in August: What Could This Mean for the Price?

Solana (SOL) is poised to top the token unlock list in August, with nearly $340 million worth of SOL tokens set to enter circulation.

According to data from Token Unlocks, Solana will mark the largest issuance this month, which could potentially impact the price.

Market analyst Wazz Crypto suggests that the token unlocking trend could become more aggressive, leading to accelerated sell-offs. He noted:

In my opinion, token unlocking is likely to become more aggressive over time, with investors and teams rushing to sell as they realize there is little demand for continuously mined tokens.

READ MORE:

German Federal Authority Issues a Warning to Crypto Users

However, this week has seen a shift, with investors and traders pulling back from altcoin, as evidenced by the significant spot outflows.

For example, since August 12, altcoin has experienced net outflows of $77 million, according to Coinglass data. In the previous week, Solana recorded outflows of $182 million, highlighting investors’ broader risk-averse stance in August.

This cautious approach contributed to SOL’s price drop from $185 in early August to $141 at the time of writing.

The upcoming unlocking of $340 million worth of tokens could further aggravate investor sentiment, which has already been weakened by recent market trends. Unless Bitcoin (BTC) leads a market recovery that lifts the SOL in the remaining weeks of August, the altcoin price could face further downward pressure.

Alexander Stefanov