Token Unlock Alert: 6 Cryptos to AVOID in April

April is shaping up to be a big month for token unlocks. Some of the largest and most anticipated projects in crypto are about to release millions of tokens into circulation. For traders, that often means one thing: volatility. 

If you’re holding any of these six tokens, it’s worth knowing what’s coming. Coinpedia broke down the numbers, and when supply hits the market without enough demand to absorb it, prices tend to slide. Here’s what to watch.

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Wormhole (W) – The Biggest Unlock of the Month

April 3 is the date to circle. Wormhole is releasing 1.28 billion W tokens, which is a massive 28.4% of the total supply. This is a cliff unlock, meaning all those tokens hit the market at once. Historically, that kind of supply shock creates heavy selling pressure. 

Wormhole is one of the most widely used interoperability protocols, and its token has been highly anticipated. But when over a quarter of the supply becomes liquid overnight, sellers tend to outpace buyers. If you’re holding W, this is the one to watch closely. The days leading up to the unlock could see profit-taking, and the days after could see continued selling as recipients cash out.

Hyperliquid (HYPE) – Core Contributors Get Their Tokens

On April 6, Hyperliquid unlocks tokens for core contributors. That’s historically the riskiest category. Core team members have been waiting for their allocation, and when they finally get it, selling pressure often follows. Hyperliquid is a high-performance perpetual exchange with a passionate user base, but even the strongest communities can’t always absorb team selling. 

HYPE has shown high volatility in the week after past unlocks, with sharp moves in both directions. The risk here isn’t just the unlock itself, it’s the uncertainty of how contributors will behave. Some may hold long-term. Others have been waiting months to make profits. That uncertainty usually resolves to the downside in the short term.

Optimism (OP) – A Monday Surprise

March 31 might technically be March, but it sets the tone for the April trading week. Optimism unlocks tokens for core contributors, with 49.3% of the total supply already in circulation. Monday unlocks tend to get sold into, especially when they go to team members. 

Optimism is a leading Layer 2 with strong fundamentals, but fundamentals don’t always protect against supply shocks. The unlock happens right before the April trading week begins, meaning sellers could be active from the first session. Keep an eye on OP heading into that week. The market’s ability to absorb this unlock will say a lot about overall sentiment toward Layer 2 tokens.

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Arbitrum (ARB) – DAO Treasury Release

April 16 brings an unlock for Arbitrum’s DAO Treasury, with 60.4% of the supply already unlocked. This one is lower risk than team or VC unlocks, because DAOs don’t typically dump their holdings. Arbitrum is one of the most active Layer 2 networks, with deep liquidity and strong developer adoption. 

The DAO treasury is responsible for funding grants and ecosystem growth, so these tokens are more likely to be deployed strategically rather than sold into the market. Still, it’s a large volume event. Any movement of tokens from the treasury to active wallets is worth watching for unusual activity. The risk here is lower, but it’s not zero.

LayerZero (ZRO) – Core Contributors Again

On April 20, LayerZero unlocks tokens for core contributors, with 25.2% of the supply already in circulation. The project has a strong narrative with its Zero L1 launch later this year, but short-term sell pressure is likely. Core contributor unlocks almost always bring sellers. 

LayerZero has been one of the most hyped interoperability projects, and its token has held up relatively well. But when team members get access to tokens they’ve been waiting months for, profit-taking is a natural reaction. The unlock happens just as the market is watching for updates on the Zero L1 launch, which could either absorb the selling or get overshadowed by it.

Sui (SUI) – The First Unlock of the Month

On April 1, Sui unlocks 42.9 million tokens, representing about 1.1% of the released supply. This one goes to the Community Reserve, which is lower risk than team or VC unlocks. But Sui is a top-tier L1 with high trader attention. The first unlock of the month often sets the tone for the rest. 

Sui’s Community Reserve unlock is actually the best-case scenario. These tokens are meant for grants and ecosystem growth, not dumping. Way lower risk than team or VC unlocks. Still worth watching, but the risk profile is definitely lower.

Still, with trader attention high, any large movements could trigger volatility. This is the one to watch early in April to gauge how the market reacts to supply events.

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What Smart Traders Are Watching

Token unlocks aren’t always bad. If demand is strong enough, the market can absorb new supply without much pain. But when multiple large unlocks happen in the same month, it creates a lot of potential selling pressure. 

These six projects Wormhole, Hyperliquid, Optimism, Arbitrum, LayerZero, and Sui, are all facing significant supply events in April.

If you’re holding any of them, it’s worth knowing the dates and watching the price action. Sometimes the best move is sitting out until the dust settles. Other times, it’s knowing when to take profits before the selling starts. Either way, April is going to be interesting.

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