1 billion dollars worth of cryptocurrency will be unlocked for market release in September.

Unlocking tokens is considered a crucial liquidity event in the financial market. Therefore, traders need to closely follow the moment when the supply is distributed to the market. The latest schedule from DefiLlama has outlined these flows for the upcoming month, highlighting liquidity increases that could create short term volatility.

It is noteworthy that the largest unlock events are concentrated around the 30-day period, signaling a significant flow of tokens at the end of the month. With the volatility in September already reflected in the prices, the question is whether traders can cope with the impact of these supply shocks.

Moderate unlocking this week, expected to increase significantly next month

The chart from DefiLlama presents the upcoming token unlocks scheduled for next month. The first small unlock occurred on August 25, with a total of about 40 million tokens. This is followed by a large unlock on August 29, with approximately 280 million tokens.

Next, September promises to bring a real wave of supply. This month starts with 180 million tokens being unlocked, followed by the largest unlocking event, around 350 million. The unlocking events will gradually decrease on September 21, with amounts under 50 million.

Source: DeFilLamaIn the short term, weekly unlocks at a moderate level, around 227.8 million USD, indicate that short-term liquidity pressure is likely to be managed. However, in the next 30 days, the total amount of unlocks will increase to 838.5 million USD.

Simply put, the market has the capacity to absorb next week without much stress, but mid-September may witness strong selling pressure, potentially testing support levels and creating volatility.

Increase risk when FOMC occurs at the same time

Notably, the meeting of the Federal Open Market Committee (FOMC) is scheduled for the same timeframe, and the market has shifted to a risk-off state following Fed Chairman Jerome Powell's speech. In this context, will September trigger a deeper correction across the market?

Unlocking tokens has a significant impact on the market

Important tokens are unlocking this month, which is expected to have a short term impact on the market.

Official Trump (TRUMP) leads with 6.83% of the supply unlocked, equivalent to about 178.67 million USD, which could create selling pressure if investors decide to release their assets.

On the contrary, major blue-chip tokens like Bitcoin (BTC) and Solana (SOL) only have very small unlock periods in 1 month at (0.07% and 0.36%, respectively), indicating stable supply conditions.

For BTC, the total supply amounts to 1.58 billion USD. Although the absolute value is large, the small percentage indicates that any short term fluctuations are likely to be limited, leading to a neutral to slightly bullish outlook, unless broader market pressures intervene.

Source: TokenomistIn summary, the unlock events at the end of August and mid-September will create concentrated liquidity. TRUMP and SVL carry the highest supply risk, while BTC and SOL maintain structural stability. In the short term, weekly flows may be managed, but larger unlock events in mid-September could trigger a market repricing.

Mr. Teacher