LayerZero Leads $1 Billion Token Unlock Wave Amid Market Jitters

20.10.2025 13:48

The crypto market is bracing for a significant influx of new tokens, with over $1.01 billion in unlocks scheduled for the week of October 20 to October 26, 2025, following the previous week's $1.02 billion in releases. This includes $188.74 million in cliff unlocks, which are sudden, large-scale releases, alongside more predictable linear unlocks.

LayerZero (ZRO) is at the forefront of the cliff unlocks, with $44.73 million in tokens set to be released, representing 23.2% of its circulating supply. Ahead of the unlock, ZRO traded near a three-month low at $1.77. The project has entered a phase of active unlocks for strategic partners and core contributors, with 10.63 million tokens going to core contributors and 13.42 million to strategic partners. Additionally, LayerZero has repurchased 1.67 million tokens valued at $2.9 million, and only 33% of ZRO's total supply is unlocked, with regular inflows expected until 2027.

Other notable cliff unlocks include Plasma (XPL), which will release $36.88 million in tokens (4.6% of its supply) on October 25. XPL traded at $0.41, down from recent highs of $1.63 in late September, and only 18% of its supply has been unlocked so far. Multibank Group (MBG) will add 15.48 million tokens valued at $17.33 million on October 22, increasing its supply by 19.1%, while SOON will unlock $14.43 million in tokens (5.7% of supply), entering a steep phase of market inflows for ecosystem growth and marketing.

In linear unlocks, Worldcoin (WLD) will add $4.94 million in tokens, and Official Trump (TRUMP) will release $4.18 million. These steady releases contribute to token inflation without typically causing market panic. Other recurring unlocks include Avalanche (AVAX) at $2 million, IP at $1.92 million, and ASTER at $1.75 million, along with EthFi ($1.34 million), TIA ($1.21 million), and DOT ($1.01 million).

Meteora (MET) stands out with a massive token generation event (TGE) unlock valued at $454.84 million, representing 43% of its total supply and over 86% of its market cap. MET is still in price discovery mode, and this unlock could dramatically shift its valuation as trading begins.

Analysts have raised alarms, particularly for ZRO, warning that the $41 million unlock could lead to significant price declines due to supply shocks, drawing parallels to historical drops of 15-30% for tokens like SUI and APT. However, some optimism exists due to LayerZero's adoption and previous buybacks, which may help absorb selling pressure over time.

ZRO $1.61 -0.30%
ZRO faces significant bearish pressure from a $44.73M token unlock representing 23.2% of circulating supply. This supply shock historically causes 15-30% declines in similar tokens. Despite LayerZero's adoption and previous buybacks providing some cushion, the massive unlock during market jitters creates strong selling pressure. Short-term likely sees immediate decline to test lower supports. Long-term recovery depends on ecosystem growth absorbing excess supply through 2027.
Technical analysis
Technical indicators show overbought conditions with RSI near 68 and stochastic at 98-99, suggesting imminent correction. Strong uptrend momentum (ADX 35-41) conflicts with fundamental supply pressure, creating high reversal risk. Volume patterns indicate potential distribution.
XPL $0.25 -14.86%
XPL faces significant bearish pressure from a $36.88 million cliff unlock on October 25, representing 4.6% of supply. This substantial dilution comes amid already depressed prices, with XPL down 75% from September highs. The unlock creates immediate selling pressure from early investors, likely exacerbating the downtrend. Short-term outlook remains negative until unlock absorption completes, though long-term recovery potential exists once supply shock subsides and only 18% of total supply remains unlocked.
Technical analysis
Technical indicators confirm bearish sentiment: RSI at 43-46 shows weakening momentum, price trades below all EMAs indicating sustained downtrend, and ADX above 25 confirms strong directional movement. Volume patterns suggest limited buying interest ahead of unlock event.
MET $0.38 -14.14%
MET faces extreme bearish pressure from a massive $454.84M token generation event representing 43% of total supply and 86% of market cap. As the coin is still in price discovery mode, this unprecedented supply influx will likely cause severe price depreciation. Historical precedents show 15-30% declines for similar unlocks. Short-term outlook is highly negative with potential for dramatic valuation reset as new tokens enter circulation.
WLD $0.78 -7.97%
WLD faces a $4.94M linear token unlock amid broader market supply concerns. While linear unlocks typically cause less panic than cliff unlocks, the cumulative $1B+ weekly token releases create systemic selling pressure. WLD's unlock represents gradual inflation rather than sudden shock, but occurs in a risk-off environment where large unlocks (ZRO, MET) dominate sentiment. Short-term likely sees continued downward pressure from macro supply dynamics, though WLD's linear nature provides some insulation versus cliff unlocks.
Technical analysis
Technical indicators show mixed but concerning signals: RSI at 65 (1h) indicates approaching overbought territory while price trades near resistance. Volume shows modest increase but ADX at 39 suggests strong trend momentum, likely downward given supply pressure. MACD positive but weak at 0.02.
TRUMP $7.35 -4.74%
TRUMP faces a $4.18M linear token unlock, contributing to supply inflation without cliff shock. This steady dilution creates persistent selling pressure, though less severe than cliff unlocks. The unlock occurs amid broader market jitters from $1B+ token releases, potentially amplifying negative sentiment. Short-term: moderate downside risk from increased supply. Long-term: depends on meme coin demand and political catalysts outweighing dilution effects.
Technical analysis
Mixed signals: RSI neutral (53-60), MACD positive but weak, volume below average. Price near EMAs suggests consolidation. ADX shows weak trend strength. Technicals don't strongly confirm either direction, leaving fundamentals to drive price action.
Sources
Major Token Unlocks Event from October 20 to October 27: Here is the Breakdown
cryptonewsland.com 21.10.2025 18:35
ZRO Sparks Investor Attention With Upcoming Cliff Unlock Momentum
crypto-economy.com 20.10.2025 16:49
LayerZero leads cliff unlocks as market preps to absorb $1B in new tokens this week
cryptopolitan.com 20.10.2025 13:19
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