The cryptocurrency market saw significant movement this week, influenced by a series of major token unlocks and key U.S. economic indicators. While former President Donald Trump’s tariff decision created some turbulence, crypto investors were focused on the scheduled release of billions of dollars worth of tokens. Here’s what happened and why it matters.
Major Token Unlocks Shake the Market
This week brought several major token unlocks, adding liquidity and influencing supply dynamics for multiple projects. Investors were closely watching how these releases would impact price action.
February 5: Kaspa, XDC, and Ethena Token Unlocks
A busy start to the week saw three major tokens unlocking on February 5, collectively worth over $113 million.
- Kaspa (KAS) released 172.01 million tokens, valued at around $22 million. This accounted for 0.67% of its current circulating supply.
- XDC Network (XDC) unlocked a massive 841 million tokens, representing 5.36% of the total supply. The estimated value? A hefty $85.9 million.
- Ethena (ENA) saw a smaller, yet notable, release of 7.93 million tokens. Worth approximately $5.3 million, this accounted for 0.25% of its existing circulating supply.
With these unlocks, liquidity increased, and investors kept a close eye on whether selling pressure would follow.
February 6: Spell Token Unlock
February 6 was comparatively quieter but still saw a significant unlock from Spell (SPELL).
- Spell (SPELL) released 1.31 billion tokens, valued at around $1.7 million. This accounted for 0.84% of its circulating supply.
While smaller than the previous day’s unlocks, SPELL’s addition to the circulating supply still mattered to those holding the token.
Economic Data Influences Market Sentiment
Beyond token unlocks, broader financial markets paid close attention to key economic indicators set for release on February 7. Crypto traders also watched these reports closely, as macroeconomic trends can drive risk appetite.
February 7: Nonfarm Payrolls and Unemployment Rate
Economic reports have historically influenced Bitcoin and the broader crypto market, as they provide insight into Federal Reserve policy decisions.
- Nonfarm payrolls measure employment growth outside of farming and certain private sectors. The previous reading was 256,000, while the forecast called for 154,000 new jobs.
- Unemployment rate stood at 6.7% in the prior report, with analysts expecting a slight increase to 6.8%.
These numbers are critical because a weaker-than-expected job market could strengthen the case for interest rate cuts, potentially boosting crypto prices. Conversely, a strong labor market may give the Fed room to keep rates higher for longer, dampening investor enthusiasm.
February 7: More Token Unlocks Add to Market Supply
As if economic data wasn’t enough, February 7 also brought two additional token unlocks, injecting fresh liquidity into the market.
- Neon (NEON) unlocked 53.91 million tokens, worth around $16.5 million. Notably, this accounted for a staggering 44.92% of its circulating supply.
- Hashflow (HFT) released 13.62 million tokens, valued at $1.8 million, making up 2.70% of its circulating supply.
NEON’s high percentage unlock raised concerns about potential selling pressure, as such a significant increase in available supply can weigh on prices.
February 9: MOVE Token Unlock to Close the Week
Rounding out the week, another high-value unlock is set for February 9.
- Movement (MOVE) will release 50 million tokens, valued at approximately $37 million. This represents 2.17% of the circulating supply.
Traders will be watching closely to see how MOVE reacts post-unlock. Large unlocks often lead to short-term price fluctuations, making this event another potential trading opportunity.
