Crypto Market Braces for $638M Token Unlock Wave in Early February
The cryptocurrency market is poised for a significant liquidity test as over $638 million worth of previously locked tokens are scheduled for release in the first week of February 2026. This concentrated unlock event, involving major projects like Hyperliquid (HYPE), XDC Network (XDC), and Berachain (BERA), presents a critical moment for traders and long-term holders alike.
Token unlocks, while a standard part of crypto project economics, often introduce near-term selling pressure as early investors and team members gain access to their holdings. The scale and timing of this week's releases have drawn particular attention from analysts monitoring market depth and volatility indicators.
Hyperliquid (HYPE): A $303M Test for DeFi Darling
Hyperliquid, a high-performance decentralized perpetual futures exchange built on its own Layer-1 blockchain, faces its largest single unlock to date. On February 6, 9.92 million HYPE tokens (valued at ~$303.55 million) will be released to core contributors, representing 2.79% of the circulating supply.
The unlock comes amid a strategic shift by the project, which has already reduced its scheduled monthly team unlocks from 1.2 million HYPE in January to 140,000 HYPE for February. Market observers will be watching to see if major contributors hold or distribute their new assets, providing a signal of insider confidence.
XDC Network (XDC): Balancing Growth and Supply
Enterprise-focused blockchain XDC Network will unlock 841.18 million XDC tokens (worth ~$29.55 million) on February 5. The release, accounting for 5% of the circulating supply, is split between founders, advisors, and the team (441.18 million tokens) and a dedicated ecosystem development fund (400 million tokens).
This dual-purpose unlock highlights the protocol's ongoing effort to incentivize its builder community while managing dilution. XDC's focus on real-world asset tokenization and trade finance has garnered institutional interest, making its price action post-unlock a barometer for the broader "enterprise blockchain" sector.
Berachain (BERA): Major Unlock for a Rising Layer-1
Perhaps the most consequential unlock of the week belongs to Berachain. On February 6, the EVM-compatible Layer-1 will release 63.75 million BERA tokens (~$28.8 million), a substantial figure representing 41.70% of its current circulating supply.
The allocation is split five ways: 28.58 million to investors, 14 million to initial core contributors, 10.92 million for future community initiatives, 8.67 million for ecosystem/R&D, and 1.58 million reserved for airdrops. The sheer percentage of supply hitting the market will test the depth and resilience of Berachain's nascent DeFi ecosystem, built around its novel Proof-of-Liquidity consensus.
Market Impact and Wider Context
Beyond these three highlights, other projects including Ethena (ENA), COCA (COCA), and Tribal Token (TRIBL) are also slated for unlocks this week. Historically, such concentrated release events have preceded periods of increased volatility, as the market absorbs new supply.
The coming days will reveal whether current demand can counterbalance this influx. For disciplined investors, however, these periods often create potential entry points, provided the underlying project fundamentals remain strong.
--- Community Pulse ---
Marcus Chen, Portfolio Manager at Digital Horizon Capital: "These are planned, transparent events. The real focus should be on post-unlock vesting schedules and whether teams are aligning releases with tangible milestones. Hyperliquid's reduction in monthly unlocks is a positive governance signal."
Dr. Anya Petrova, Blockchain Economist: "Berachain's unlock is proportionally massive. Its novel PoL model is designed to incentivize long-term liquidity provision, but this will be its first major stress test. How liquidity pools react will be a fascinating case study."
"Crypto_Skeptic_42" (Forum Commenter): "Here we go again. 'Scheduled' dilution dressed up as news. The insiders get their bags unlocked, retail gets the volatility and often the downside. It's a tired playbook, and anyone not factoring an immediate 5-10% headwind into their models is being naive."
Rohan Mehta, Independent DeFi Analyst: "Don't just watch the price. Watch the on-chain data—exchange inflows, holder distribution changes, and smart contract activity on these chains. That's where the real story of absorption or distribution will play out."
Adapted from original reporting.