## Understanding Token Unlock: Why 2025 Could Be Volatile for SOL and SUI

Token unlock represents a critical market event that every crypto investor should understand. It's the moment when previously restricted tokens become tradable, potentially flooding the market with new supply. Think of it as a timed release mechanism built into most blockchain projects.

### The Main Sources of Token Locks

Projects typically lock tokens across four primary categories. The team and founders secure portions for 1–4 years, releasing them in phases to align incentives with long-term performance. Early-stage investors and venture capital firms purchase at discounted rates but accept lock-in periods as part of their investment terms. Ecosystem development programs allocate tokens for airdrops and community rewards, often with staggered distribution timelines. Additionally, proof-of-stake networks distribute tokens through staking mechanisms that unlock after designated holding periods conclude.

### Quantifying the Risk: When Should You Pay Attention?

The real danger emerges when unlock volumes represent more than 5% of a token's circulating supply. This threshold matters because large releases can trigger sharp selloffs, particularly during market downturns. Currently, Solana (SOL) trades at $122.00 with a -1.21% 24-hour change and Sui (SUI) sits at $1.39 with a -1.35% decline. Both cryptocurrencies face material unlock schedules in 2025 that warrant monitoring.

To prepare effectively, use dedicated tracking platforms to identify specific unlock dates well in advance. Monitor the percentage of circulating supply affected—double-digit percentages signal elevated volatility risk. Context matters enormously: bear market environments amplify the negative impact of unlocks, while bull runs often absorb new supply without significant price damage.

### Strategic Positioning for Upcoming Unlocks

Token unlocks function as time-sensitive catalysts that demand proactive risk management. In the near term, prices may face downward pressure as new sellers enter the market. However, high-quality projects with strong fundamentals typically recover as the market absorbs the new supply. The prudent approach involves reducing leverage before major unlock events and reassessing portfolio concentration in assets facing significant token releases. By 2025, both SOL and other major ecosystems will experience various scales of unlock activity—staying informed and adjusting your exposure accordingly could mean the difference between capitalizing on volatility or being caught off-guard.