Major Token Unlocks Loom for Jito Token Holders
Jito is about to release tokens that will more than double the project's circulating supply, a move which has investors worried about the $JTO token price.
The start of December has been troubling for Jito ($JTO) token holders. This week, the project will undergo massive token unlocks, particularly on December 7, when 135.71 million $JTO tokens are set to be released. This unlock will more than double its current circulating supply of 131.8 million tokens.
The newly unlocked tokens will be distributed among early investors and core contributors (team members and advisors). These stakeholders are likely to sell at least a portion of their allocations to secure profits. Given the scale of the unlock relative to the existing circulating supply, the resulting selling pressure could be substantial.
Jito, as a project, has performed remarkably well. Early investors have seen returns of several hundred percent on their investments, making it logical for them to lock in profits by selling some of their tokens.
Looking ahead, this is only the beginning of token unlocks for Jito. After the December release, further unlocks for investors and core contributors will continue until 2026. The extent of their impact on the token price will likely depend on the project’s fundamental performance and broader market conditions.
A Common Challenge in Token Economics
Despite Jito’s strong fundamentals, the project’s tokenomics highlight a recurring issue in the crypto market: a low circulating supply paired with a high, fully diluted valuation.
At launch, JTO had a modest circulating supply of just 104 million tokens. While supply has been increasing gradually over the first months of its existence, the project is now entering a phase of significant supply growth. Over the next several years, the circulating supply is set to expand dramatically, reaching a total of 1 billion tokens.
This rapid increase in supply can negatively affect token prices, as more tokens become available for sale.
Recent Price Movements
JTO’s price has risen by about 80% over the past month, which is in line with the broader market rally. However, the token has remained range-bound for much of the year, despite Jito’s notable success within the Solana ecosystem.
Currently, Jito is the largest DeFi project by total value locked (TVL) on Solana. It offers a comprehensive suite of products, including restaking and liquid staking services, as well as widely used MEV (Maximal Extractable Value) software for Solana validators.
Despite its influence and success, Jito’s market cap based on circulating supply is just $488 million—a figure that seems modest given the project’s scope. However, concerns over large unlocks have likely hindered JTO’s growth. Many investors worry about potential sell pressure and are reluctant to serve as “exit liquidity” for early investors and venture capitalists.
Despite these concerns, it is worth noting that large token unlocks don’t always lead to significant price declines. In some cases, strong fundamentals and favorable market conditions have mitigated the effects of increased supply. With Jito’s robust position in the Solana ecosystem and its proven utility, the project may be able to maintain investor confidence despite the challenges posed by upcoming unlocks.
Whether the broader bullish sentiment in the crypto market will support JTO’s price remains to be seen. We will continue to Observe.
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