Solayer Token Plunges 35% as Market Reacts to Upcoming $46M Token Unlock

Solayer token lost 35% in a day and over $350M in value ahead of a large token unlock event.More than 27 million LAYER tokens worth $46.7M will enter circulation on May 11, increasing sell pressure.Whale activity and short positions during Asian trading hours appear to have worsened the market selloff.Solayer’s native token LAYER experienced a sharp decline of nearly 35% in the last 24 hours, dropping to $1.75 at press time. The fall has wiped out approximately $350 million in market value, marking a significant shift after months of upward momentum. The token is now down 47.8% from its all-time high of $3.39 recorded on May 5.Trading activity surged alongside the price drop, with daily volume hitting $1.26 billion according to CoinGecko. This marks a 179 percent increase in volume as investors reacted strongly to upcoming developments. The spike in trading suggests heightened uncertainty and rapid position changes among traders.Upcoming Token Unlock Drives Investor CautionThe primary trigger behind the decline appears to be an anticipated token unlock scheduled for May 11. Data from Tokenomist indicates the event will release more than 27 million LAYER tokens into the market, representing nearly 13 percent of the total supply. These tokens are valued at around $46.7 million and are expected to increase selling pressure.Following this unlock, Solayer will begin a long-term vesting schedule. Under this plan, new tokens will be issued every three months to the foundation, continuing until 2030. Investors are closely watching the potential long-term impact of consistent token releases on the market.Whale Activity Accelerates Downward MovementA large holder reportedly exited their position during Asia trading hours, which likely accelerated the selloff. According to a May 6 post on social platform X, the wallet in question opened a large short position via perpetual futures before offloading its holdings. This action reportedly caused funding rates to flip negative and further pressured the market.Despite the drop, some traders remain hopeful of a rebound. The long/short ratio climbed to 1.45, reflecting a larger share of long positions entering the market. Still, volatility remains high, and confidence has weakened following the steep correction.Solayer has maintained its commitment to the project’s goals. The blockchain claims it can support over one million transactions per second. The Solayer Emerald Card also supports USDC transactions via Visa, Apple Pay, and Google Pay integration.The post Solayer Token Plunges 35% as Market Reacts to Upcoming $46M Token Unlock appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.