ZK unlocks $5.91 million worth of tokens after one week. How will this liquidity shock unfold?

According to the latest news, zkSync (ZK) will unlock approximately 173.14 million tokens at 0:00 Beijing time on January 17, valued at about $5.91 million based on the current price. This scale of unlocking is quite significant and has also sparked market attention on subsequent price movements.

How big is the unlocking scale?

The key data of this unlocking deserves a detailed look. 173.14 million tokens at the current price of $0.034082 indeed amount to $5.91 million. But more importantly, this unlocking’s impact on ZK’s circulating supply—currently at 1.06 billion tokens with a maximum supply of 2.1 billion—will increase the circulating supply by about 1.6%.

How has ZK performed recently?

From the price trend perspective, ZK has shown relatively steady performance recently. 24-hour increase of 2.17%, 7-day increase of 3.23%, and 30-day increase of 3.88%. This indicates that market sentiment towards ZK is gradually warming but not in a frenzy stage.

Market Fundamentals

• Market Cap: $361.83 million, ranked #122
• 24-hour trading volume: $24.99 million
• The project will be listed for trading in June 2024

What could the unlocking bring?

Short-term market reaction

Token unlocking usually results in several possible market behaviors:

• Selling pressure: Some holders may choose to sell after unlocking, especially early participants or institutional investors
• Liquidity improvement: More liquid tokens entering the market could improve trading depth
• Price volatility: Short-term fluctuations may occur before and after the unlock, depending on market sentiment and overall market trend

Long-term perspective

From a project perspective, zkSync, as an important participant in the Ethereum L2 ecosystem, remains relatively stable fundamentally. Relevant information shows that zkSync continues to attract attention in the Layer2 space, with ecosystem applications expanding continuously. The unlock itself is a normal token economic arrangement and should not be overinterpreted as a negative signal.

How should investors view this?

Personal opinion: this wave of unlocking is more of a natural adjustment of market liquidity rather than a black swan event. The key points are:

• Timing: The unlock occurs in a relatively stable market environment, not during extreme boom or panic periods
• Scale of unlock: 1.6% increase in circulating supply is significant but constitutes a limited proportion of the total supply
• Project fundamentals: zkSync’s position and technological accumulation in the L2 ecosystem remain solid

Summary

This token unlock of ZK is an expected event, with a scale of $5.91 million and a 1.6% increase in circulating supply. It is considered a medium-sized unlock in the crypto market. Based on current prices and market performance, the market seems to have some psychological readiness. The key going forward will be the actual trading performance after the unlock and the overall market trend—if the market remains strong, this unlock may be absorbed quickly; otherwise, it could face more selling pressure. Investors are advised to closely monitor price movements around January 17 and not to panic excessively.