This week, the crypto market is preparing for over $625 million worth of token unlocks, with SUI dominating the cliff-style releases. Scheduled between April 28 and May 5, the unlock wave raises questions about market pressure and price stability following recent rallies.

Key Token Unlocks: SUI and Solana Take Center Stage

According to Tokenomist data, the unlock events include both cliff and linear models:

• SUI unlocks: 74 million tokens worth $262.88 million will be released, accounting for 2.27% of SUI’s total supply.

• Solana unlocks: 465,770 SOL tokens, valued at around $67.61 million, will enter circulation gradually.

The SUI token unlock significantly outweighs others in terms of value this week, setting the stage for potential volatility.

Market Impact: Can SUI Hold After a 61% Rally?

In recent weeks, SUI experienced a 61% price rally, buoyed by broader optimism in Layer 1 blockchain ecosystems. However, large unlocks often lead to price pressure, as newly available tokens may enter the market quickly.

Analysts are divided:

• Some expect SUI’s price to face downward pressure if holders choose to liquidate unlocked tokens.

• Others argue that a well-managed release combined with strong market sentiment could minimize the impact.

Still, the situation has sparked concerns about whether SUI’s $300 million+ unlock in May might echo past trends where major unlocks triggered temporary corrections.

Wider Implications for the Crypto Market

Beyond SUI, other notable projects are also seeing token unlocks this week, contributing to a cumulative potential liquidity increase of over $625 million.

While Solana’s linear unlock is less abrupt, adding tokens gradually to circulation, cliff unlocks like SUI’s tend to create sharper market reactions due to sudden supply spikes.

The broader question for investors is whether the market’s liquidity depth is sufficient to absorb these new tokens without significantly impacting prices.

What Investors Should Watch

• SUI trading volume and sell pressure post-unlock

• Solana’s market reaction to gradual increases in supply

• Overall market sentiment amid potential increased volatility

These factors will determine if SUI’s recent rally can hold or if the market correction will unfold as more supply floods in.