Token Unlocks Bring Supply Pressure and Potential Market Impact

Crypto traders are facing another week of token unlocks, with RAIN and YZY being two of the most notable releases. According to CryptoRank's data, about $631.39 million worth of RAIN tokens will be released on August 10, but this number alone doesn't reveal where the greatest supply pressure sits. Tokenomist identifies YZY's August 16 cliff as the week's most concentrated dilution event relative to its circulating supply.

While RAIN's release represents 4.37% of the token's maximum supply and 7.02% of its market capitalization, YZY's unlock is more significant in proportion to its circulating supply. With a worth of approximately $35.22 million, 120.83 million YZY tokens will become available on August 16, representing 22.83% of the circulating supply.

Traders comparing token unlocks may gain a clearer picture of potential supply pressure by focusing on circulating-supply percentages alongside headline dollar values. Research has shown that releases below 1% of circulating supply have had limited market impact, while larger releases were associated with weaker price performance as the share of newly available supply increased.

Tokenomist also highlights the concentration of YZY's release among private investors, with about 12.5 million tokens allocated to Vesting 1 and 8.33 million tokens belonging to Vesting 2. The original distribution assigned 70% of the total supply to Yeezy Investments LLC.