SIGN, JUP and other tokens experience large unlocks this week: detailed analysis of market impact and opportunities

Gate Market Data shows that JUP was reported at $0.1903 on January 26, down 4.01% over the past 24 hours. Meanwhile, Tokenomist data indicates that approximately 16.40% of SIGN tokens (i.e., 1.64 billion tokens) are now in circulation.

This week, multiple tokens including SIGN and JUP will undergo large-scale unlocks, adding a total of over $100 million in circulating value. These unlock events could significantly increase market selling pressure in the short term, potentially impacting the price trends of related assets.

01 Focus on Unlocks This Week: SIGN and JUP

The core of this week’s token unlocks centers around January 28, with SIGN and Jupiter (JUP) unlocks being particularly noteworthy.

SIGN plans to unlock tokens worth approximately $7.57 million on January 28, representing 15.76% of its current market cap. According to Tokenomist data, these tokens will be allocated to the “Backers” portion.

As of January 26, SIGN’s circulating supply is 1.64 billion tokens, only 16.40% of its total supply of 10 billion tokens. The proportion of this unlock is relatively high, which may exert some pressure on market prices.

JUP will also unlock on January 28. According to Bitcoinsistemi data, this unlock is valued at about $9.82 million, accounting for 1.66% of its market cap.

Gate Market data shows that JUP is currently priced at $0.1903, with a market cap of approximately $607.2 million. Tokenomist data indicates that the tokens unlocked will be allocated to the “Jupuary” portion.

02 Other Important Token Unlock Schedules

In addition to SIGN and JUP, several other tokens will also unlock as planned this week, forming a dense period of supply release.

GateToken (GT) was the first to unlock on January 26, releasing tokens worth about $6.454 million, representing 5.79% of its market cap.

On January 29, Treehouse (TREE) will undergo a highly significant unlock, releasing tokens valued at $8.98 million, which accounts for 58.01% of its market cap. Such a large-scale unlock is likely to have a notable impact on TREE’s price.

Later in the week, Optimism (OP) plans to unlock tokens worth approximately $9.15 million on January 31. EigenCloud (EIGEN) will unlock tokens valued at about $11.45 million on February 1.

03 Market Impact of Unlock Events and Historical Review

Token unlocks essentially involve releasing previously locked tokens into the open market, directly increasing potential supply.

Historical data from Tokenomist shows that after past unlock events, SIGN and JUP experienced relatively low volatility within 7 days. This suggests that the market may have already partially anticipated these events.

The actual price impact heavily depends on the recipients of the unlocked tokens. If the recipients are early investors or the team, they may have strong profit-taking motives. Conversely, if tokens are distributed to the community or used for ecosystem incentives, immediate selling pressure may be less likely.

Additionally, the overall market sentiment at the time of unlock is a key variable. In a bullish, optimistic market, the new supply might be absorbed by strong demand; in a bearish or volatile market, it could exacerbate declines.

04 Investor Strategies and Responses

For ordinary investors, it is crucial to adopt cautious and flexible strategies during a week of dense token unlocks.

Closely monitor official announcements to understand the specific recipients and subsequent plans for the unlocked tokens. If the project has clear lock-up or staking incentives, it may mitigate immediate selling pressure.

Use price alerts and chart tools provided by exchanges like Gate to set key price warnings, enabling timely responses to market fluctuations. Market volatility often increases before and after unlock events.

Before making any trading decisions, reviewing the historical price performance of the token following similar unlock events can provide valuable insights. Equally important is assessing the project’s fundamentals and long-term development prospects.

Future Outlook

As of January 26, Gate Market data shows JUP at $0.1903, with a 24-hour trading volume of $862,500. Tokenomist data indicates that SIGN’s fully diluted valuation (FDV) is as high as $400.4 million.

When tokens are unlocked like gates opening and flowing into the market, short-term price movements resemble ripples on a lake stirred by stones. For long-term investors, unlock-induced volatility may present buying opportunities; for short-term traders, it necessitates more refined risk management.