Countdown for the 3 major token unlocks! SIGN, KMNO, JUP release 460 million this week

Cryptocurrency Market End of January Token Unlocks Exceed $464 million. SIGN releases 290 million tokens on the 28th, accounting for 17.68% of circulating supply; JUP releases 53.47 million tokens on the same day; KMNO unlocks 229.17 million tokens on the 30th, totaling 572.64 million tokens, which may trigger short-term selling pressure.

SIGN Largest Weekly Unlock with 17% of Circulating Supply Released

(Source: Tokenomist)

Sign is a cross-chain authentication protocol that allows users and enterprises to create secure and verifiable claims or assertions. On January 28, the team will unlock tokens worth $11,610,000, releasing 290 million SIGN tokens. This represents 17.68% of its total issued supply of 1,640,000,000 tokens, making it the largest of the three major token unlocks this week.

A single unlock of 17.68% is extremely high in the crypto market. Typically, unlocking over 10% of tokens can significantly impact supply and demand dynamics, and SIGN’s 17.68% means nearly one-fifth of the circulating supply will be added in one day. Such large-scale supply shocks often lead to short-term selling pressure, especially when tokens are released to team members, advisors, or early investors.

The distribution structure of the token unlock reveals fund flow. The team will allocate 150 million tokens to community incentives, which are likely to be gradually released via airdrops, staking rewards, or ecosystem activities rather than immediate sale. Additionally, 45 million tokens will be used for ecosystem development, possibly allocated to developer grants, partner incentives, or liquidity provisioning.

Most notably, the Sign Foundation will receive 95 million SIGN tokens, accounting for 32.76% of this unlock. Foundation-held tokens are usually used for long-term operations and strategic reserves, but in market downturns or liquidity needs, the foundation may choose to sell some. Investors should closely monitor on-chain data to see if this 95 million tokens flow into exchange wallets.

From a technical perspective, large token unlocks typically influence prices 1 to 2 weeks prior to the event. Market participants often anticipate increased supply, leading to preemptive selling or shorting. SIGN holders need to assess whether current prices already reflect the upcoming unlock. If not fully priced in, further price adjustments may occur around January 28.

Kamino Unlocks 3.68% of Circulating Supply, Solana DeFi Faces Pressure

(Source: Tokenomist)

Kamino Finance is a decentralized finance (DeFi) protocol on the Solana (SOL) blockchain, specializing in lending and liquidity provision. On January 30, Kamino will unlock 229.17 million KMNO tokens, worth approximately $10,070,000, representing 3.68% of its total supply of 6,230,000,000 tokens.

Compared to SIGN’s 17.68%, KMNO’s 3.68% is more moderate but still noteworthy. In DeFi protocols, token holders are often more sensitive to price movements because many users stake tokens or mine liquidity. When a large amount of new tokens enter the market, existing holders may worry about dilution and choose to exit early.

The distribution of the unlock shows a typical Web3 project structure. The team will allocate most of the unlocked tokens (145.83 million KMNO) to key stakeholders and advisors. These insiders usually have long-term commitments but also tend to have lower cost bases, making them more willing to sell during uncertain market conditions.

Additionally, Kamino will reward core contributors with 83.33 million KMNO tokens. Core contributors include developers, early employees, and key partners, often subject to additional lock-up periods or vesting schedules. Nonetheless, even with these restrictions, over 229 million tokens will become liquid on January 30, which could enter the market at any time.

The overall performance of the Solana ecosystem also influences KMNO’s unlock impact. As a DeFi protocol on Solana, KMNO’s price is highly correlated with SOL’s price. If SOL remains strong at the end of January, the unlocking pressure may be absorbed by ecosystem growth. Conversely, if SOL weakens, increased supply of KMNO could exacerbate downward pressure.

It’s also important to note that token unlocks in DeFi protocols often coincide with changes in protocol usage. If Kamino announces major product updates, new partnerships, or growth metrics during the unlock period, these can offset selling pressure. Investors should watch for strategic announcements around January 30.

Jupiter Monthly Unlock at 1.7%, Stable Release Strategy

(Source: Tokenomist)

Jupiter is a decentralized liquidity aggregator on the Solana blockchain, optimizing trading routes across multiple DEXs to provide users with the best token swap prices and minimal slippage. On January 28, Jupiter will unlock 53.47 million JUP tokens, worth about $9,940,000, representing 1.7% of its total supply of 3,270,000,000 tokens.

Compared to the previous two projects, JUP’s 1.7% unlock is the lowest, but its unique feature is a monthly phased unlocking mechanism. This means Jupiter releases tokens gradually each month rather than a one-time large release. This progressive unlock strategy is theoretically more conducive to market stability, as investors can anticipate a steady supply increase.

The distribution structure shows that Jupiter has allocated most tokens (38.89 million JUP) to the team, accounting for 72.74% of this unlock. Such a high proportion of team-held tokens is common in crypto projects but can raise concerns about centralization. If team members decide to sell part of their holdings, it could significantly impact the price.

Additionally, stakeholders of Mercurial will receive 14.58 million JUP tokens. Mercurial is another DeFi protocol on Solana that has collaborated or merged with Jupiter. The flow of these tokens depends on Mercurial stakeholders’ strategies, including long-term holding, staking, or market selling.

As one of the most active DEX aggregators in the Solana ecosystem, Jupiter’s unlock effects are also closely tied to protocol usage. If Jupiter’s daily trading volume continues to grow, the intrinsic value support for the token increases, and the unlock selling pressure may be absorbed by rising demand. Conversely, if overall Solana trading activity declines, JUP’s unlock could face greater downward pressure.

The monthly unlock mechanism also means the market is accustomed to this rhythm. Unlike sudden large unlocks, Jupiter’s monthly releases allow investors to incorporate them into long-term holdings. Professional traders might even develop arbitrage or hedging strategies targeting JUP’s monthly unlocks.

Other Notable Token Unlock Projects

Besides Sign, Kamino, and Jupiter, Optimism (OP), Treehouse (TREE), and Zora (ZORA) will also see new token supplies entering the market in the last week of January. While these projects’ individual unlock sizes may be smaller than the top three, the cumulative effect should not be underestimated.

Optimism, as an Ethereum Layer-2 scaling solution, typically has larger and more widely watched token unlocks. OP’s unlock may involve ecosystem funds, team allocations, or early investors, with specific details to be announced by the project. While the details for Treehouse and Zora are not provided in the original text, as emerging projects, their token unlock ratios tend to be higher, potentially exerting more impact on prices.

Overall, the total value of token unlocks in the last week of January exceeds $464 million, posing a short-term liquidity challenge for the crypto market. If market sentiment remains positive and new capital flows in, these unlocks may be absorbed smoothly. However, in a bearish environment, multiple simultaneous unlocks could compound selling pressure and trigger a chain reaction.