Between late July and early August, the altcoin market faces a series of significant token unlocks. Starting with approximately $9.9 million worth of SUI, tokens including EIGEN (roughly $7.6 million to $7.87 million), Falcon Finance ($6.2 million), Kamino ($4.1 million), and Ethena ($3.5 million) are scheduled to hit the market in succession.

The issue is that the current state of the altcoin market is quite fragile. According to Coinbase Research, spot trading volume for altcoins on centralized exchanges has plummeted by 74% compared to last year, and open interest remains at very low levels. The order books have become extremely thin, creating an environment where even minor selling pressure can easily cause sharp price swings.

We are already seeing the price impact. EIGEN dropped 12.6% in the week leading up to its unlock, and Falcon Finance fell to an all-time low of $0.05963 despite positive news, such as the launch of a new payment card. Kamino has also failed to escape this bearish trend.

Given the potential for high short-term volatility in these assets, it would be safer to check order book depth and recovery in trading volume first. Let’s watch to see how the market absorbs these unlocks once this wave passes.

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