PUFFER will unlock 19.17 million tokens next week, increasing the circulating supply by 5.5%. Is the market ready?

Puffer Finance (PUFFER) is about to face a token unlock. According to the latest news, approximately 19.17 million tokens will be unlocked at 0:00 Beijing time on January 14, valued at about $1.16 million based on the current price. Although this unlock amount may not seem huge in absolute terms, relative to the project’s circulating supply, it could exert some pressure on the market.

How big is the unlock scale?

From the data, this unlock involves 19.17 million tokens. Compared to PUFFER’s current circulating supply of 34.72%, this unlock will directly increase the circulating supply by 5.52%. In other words, the circulating PUFFER tokens will increase from 347 million to 366 million.

Can the market absorb this supply wave?

From a market liquidity perspective, PUFFER’s average daily trading volume is about $3.29 million (based on 24-hour volume of $3.29 million). The unlock value of $1.16 million accounts for roughly 35% of the current daily trading volume. This means that if all the unlocked tokens are sold into the market, it could take several days for the market to fully absorb the increased supply.

However, it is important to note that:

• The unlocked tokens may not all be sold immediately; holders might choose to release them gradually
• Current market demand for PUFFER could absorb some of the supply
• The actual flow of tokens depends on holder intentions (long-term holding, phased selling, or other uses)

Project fundamentals review

Puffer is a relatively young project launched in August 2024, with a current market cap of $21 million, ranking 754th among cryptocurrencies. Recent performance shows that PUFFER has increased by 8.03% over the past 7 days but declined by 17.76% over 30 days, indicating market sentiment fluctuations.

The current PUFFER price is $0.060494, with more than one-third of the total supply already circulating, suggesting the project is still in a phase of gradual token release.

What to watch for next

• Price performance after unlock: Observe whether the market can absorb the new supply without significant price drops
• Holder behavior: If a large amount of unlocked tokens are sold off in the short term, it could pressure the price
• Market sentiment: Positive news or increased risk appetite could offset supply pressure
• Future unlock schedule: Review PUFFER’s upcoming token release timetable to assess long-term supply pressure

Summary

This unlock scale for PUFFER is relatively moderate, but given the limited daily trading volume, it remains noteworthy. The 5.52% increase in circulating supply could exert short-term downward pressure on the price, but the ultimate impact depends on market demand and the actual flow of unlocked tokens. Investors should closely monitor market reactions around January 14, especially price and volume changes. This also serves as a good case study for understanding token economics and supply pressure.