Solana Token Unlocks 2025: Everything You Need To Know

Between March and May 2025, Solana (SOL) is scheduled to release many tokens into circulation, which could impact its market dynamics. Usually, token unlocks have a significant impact on price as the number of tokens in circulation increases.

Solana is already seeing a bearish sentiment due to several meme coin scandals. If the demand in the coming months does not meet the increased supply, SOL price might enter a sustained bearish cycle.

Here’s a detailed overview of the upcoming token unlocks:

1 March 2025: Major unlock event

• Amount: Approximately 11.2 million SOL tokens, valued at around $2.07billion, are set to be unlocked.
• Percentage of total supply: This release constitutes about 2.29% of Solana’s total supply.
• Sources of unlock: The tokens originate from the FTX Estate and a separate foundation sale. These tokens were previously held by FTX and have been sold through bankruptcy auctions to institutional investors, including Galaxy Digital, Pantera Capital, and Figure. Upon unlocking, these tokens will be distributed to the respective auction winners. The subsequent market impact will depend on whether these institutions choose to hold or sell their newly acquired SOL tokens.

1 April 2025: Minor unlock event

• Amount: A release of 12,700 SOL tokens, valued at approximately $2.35m, is scheduled.

1 May 2025: Minor unlock event

• Amount: Another 73,700 SOL tokens, worth about $13.65m, will be unlocked.

Potential market implications

The substantial unlock in March has raised concerns about potential selling pressure and increased volatility in the SOL market. Traders have been observed shorting SOL in anticipation of the event, as indicated by funding rates reflecting bearish sentiment.

Despite these upcoming unlocks, it’s important to note that 97.52% of all SOL tokens are already in circulation. Therefore, while the March unlock is significant, its relative impact on the total supply may be limited.

Investors should monitor these events closely, as they could influence Solana’s price dynamics and overall market sentiment.

How should investors prepare for these token unlocks?

Investors should prepare for the upcoming Solana token unlocks by considering key strategies to manage potential risks and capitalize on market opportunities. Here’s a structured approach:

1. Understand the market impact

• Significant supply increase: The 1 March unlock of 11.2 million SOL tokens (~$2.07bn) could lead to increased selling pressure.
• Institutional holders: Since these tokens are allocated to institutional investors like Galaxy Digital and Pantera Capital, their market impact depends on whether they hold or sell.
• Market sentiment: Traders may anticipate a price dip, leading to increased short positions and volatility.

2. Monitor on-chain and exchange activity

• Track whale movements: Watch for large transactions on Solana blockchain explorers to see whether institutions move tokens to exchanges (potential sell-off) or cold wallets (long-term hold).
• Exchange wallet deposits: If SOL inflows to major exchanges (Binance, Coinbase) rise significantly, it may indicate selling pressure.

3. Adjust portfolio strategy

• Hedge against volatility:
  • Consider stop-loss orders on SOL holdings to mitigate downside risk.
  • Use options or perpetual futures to hedge against price drops.
• Buy the dip:
  • If a post-unlock sell-off occurs, investors looking for long-term SOL exposure may find better entry points.

4. Watch market reactions and funding rates

• Funding rates: If perpetual futures funding turns significantly negative, it indicates traders are heavily shorting SOL. This could create a short-squeeze opportunity if selling slows.
• Derivative market open interest: High short interest in SOL could lead to a sudden rebound if buyers step in.

5. Assess Solana’s fundamental strength

Despite the unlock, Solana’s ecosystem remains strong with high network activity and DeFi growth, increased institutional adoption, and expanding developer engagement. If long-term confidence in Solana remains intact, investors should weigh short-term price movements against the network’s overall trajectory.

Final thoughts

To sum it up, short-term traders should manage risk, monitor on-chain movements, and watch for short squeezes. Long-term investors should look for discounted buying opportunities if SOL dips significantly. Institutional investors’ behavior post-unlock will heavily influence price action, so monitoring on-chain data and exchange flows is crucial.

Disclaimer: This information is for educational and informational purposes only and should not be considered financial or investment advice. Cryptocurrency markets are highly volatile, and token unlock events can impact prices unpredictably. Always conduct your own research and consult a qualified financial advisor before making any investment decisions.