The crypto market faces more than $321 million in token unlocks during the third week of February 2026, with major projects including LayerZero (ZRO), YZY, and KAITO set to release significant new supplies into circulation.
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The scheduled releases could introduce heightened volatility and weigh on short-term price action for the affected tokens.
Token unlocks — the scheduled release of previously locked or vested tokens — are a routine but closely watched event in crypto markets. When large tranches of supply enter circulation, they can create selling pressure as early investors, team members, or ecosystem participants gain the ability to liquidate holdings for the first time.
Key Unlocks to Watch
According to a report from BeInCrypto, three projects stand out among this week's unlock schedule:
LayerZero (ZRO) — The cross-chain messaging protocol is releasing a notable tranche of tokens as part of its ongoing vesting schedule. ZRO has been a closely watched asset since its launch, and the additional circulating supply could test current support levels.
YZY — The project's unlock adds to the week's total, contributing to the broader supply expansion across the market.
KAITO — The AI-focused crypto project rounds out the major unlocks, with its token release arriving at a time of growing interest in AI-adjacent digital assets.
Combined, these three projects account for a substantial portion of the $321 million in new supply hitting the market this week.
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Why Token Unlocks Matter
Token unlock events are a fundamental component of a project's tokenomics. Most crypto projects distribute tokens over multi-year vesting schedules to align incentives among founders, investors, and community participants. However, each unlock date represents a moment where theoretical supply becomes real, liquid supply.
The market impact of an unlock depends on several factors: the size of the release relative to existing circulating supply, the identity of the recipients (early investors vs. ecosystem funds), and prevailing market conditions. In bearish or uncertain environments, unlocks tend to amplify downward pressure. In stronger markets, they can be absorbed with minimal disruption.
Traders and investors typically monitor unlock schedules as part of their risk management, adjusting positions ahead of large supply releases to avoid being caught off guard by sudden selling pressure.
What to Watch Next
Market participants should pay close attention to onchain data in the days following these unlocks. Key indicators include whether unlocked tokens are moved to exchanges — a potential signal of intent to sell — or remain in wallets, suggesting holders may be waiting for better conditions.
Trading volume and order book depth for ZRO, YZY, and KAITO will also provide early signals about how well the market is absorbing the new supply. Historical data shows that the price impact of token unlocks often plays out over several days rather than immediately at the unlock event itself.
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With the broader crypto market navigating mixed sentiment heading into late February, the $321 million in fresh supply adds another variable for traders to factor into their positioning.
