- SUI and ENA lead September’s substantial token unlocks.
- Expected volatility due to increased supply.
- Market watch on how these tokens are absorbed.
The cryptocurrency market is bracing for potential turbulence as SUI and Ethena (ENA) prepare to unlock substantial token supplies, totaling millions, starting September 1, 2025.
These unlocks could trigger significant volatility due to increased supply, affecting market dynamics in both the Layer 1 sector and the DeFi stablecoin market.
SUI and Ethena (ENA) are set for major unlock events in September 2025. SUI will release $189 million worth of tokens, while ENA plans to unlock $108 million. These activities are anticipated to introduce supply-side risks and market volatility.
The unlock process involves Mysten Labs, with Evan Cheng and Sam Blackshear overseeing SUI, and Guy Young managing Ethena. These actions are integrated into each protocol’s stated roadmap, intending to bolster network incentives and DeFi configurations.
“We are committed to transparent and phased token unlocks as part of our roadmap for ecosystem growth.” – Evan Cheng, Co-founder & CEO, Mysten Labs
The token unlocks impact DeFi liquidity and broader market dynamics. Increased SUI and ENA circulation could shift liquidity, affecting assets like ETH. The events have prompted industry figures to examine risk and stability considerations during such transitions.
Regulatory implications are highlighted, with the SEC-CFTC and EU’s MiCA guidelines demanding disclosure and compliance. Historical trends, as seen with APT and ARB, suggest potential price stabilization post initial volatility if project fundamentals are maintained.
