With a total of $1.28 billion in large-scale token unlocks scheduled for August, a significant influx of supply is set to hit the on-chain market this week. According to the token data platform Tokenomist, the YZY unlock on the 16th will lead the way with approximately $35.2 million worth of tokens, representing 22.83% of its circulating supply, followed by subsequent unlocks including Avalanche (AVAX) at $10.8 million and Aptos (APT) at $6.66 million.

The reason this wave of unlocks is causing particular tension is that the current market resilience seems struggling to absorb this volume. According to CryptoQuant data, the global stablecoin supply has shrunk by about $15 billion since May. Specifically, Tether (USDT) supply has dropped by $4 billion in just the last two months, significantly weakening the actual dollar-based purchasing power on-chain. While record-breaking inflows into Bitcoin spot ETFs are currently propping up the market, there is a structural limitation where this institutional capital remains confined to ETF assets rather than flowing into the on-chain DeFi market.

Ultimately, this week of token unlocks will be a true test of how well the on-chain market can withstand supply pressure using only its own internal liquidity. Given that new liquidity inflows are limited, the lock-up release of specific projects could lead to unexpected short-term price volatility. If you hold these assets, I recommend keeping a close eye on any large inflows into exchanges or market makers. Let's watch together to see if the market can navigate this hurdle safely!

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