Over $770 million in total token unlocks hit the market May 19-20. Here is how to read the PYTH, ZRO, and KAITO distributions without getting caught on the wrong side.
Alpha Score of 41 reflects weak overall profile with weak momentum, weak value, moderate quality, weak sentiment.
Three token unlocks totaling roughly $133.7 million from Pyth Network (PYTH), LayerZero (ZRO), and KAITO (KAITO) will hit the crypto market on May 19 and 20. These releases are part of a larger wave exceeding $770 million in token supply events during the third week of May 2026. The concentration of supply on consecutive days raises the risk of selling pressure. The actual impact depends on distribution mechanics, on-chain behavior, and market depth at the time of the unlock.
Unlocks are scheduled dilution events. Teams, investors, or foundations receive tokens previously locked under vesting contracts. The critical question is not whether the unlock occurs. It is whether the unlocked tokens are immediately tradeable or subject to further lockups, staggered vesting, or OTC distribution restrictions.
Many retail traders assume every unlock is a guaranteed sell-off. That misses the mechanism. Pyth Network unlocks 2.13 billion tokens – 36.96% of its current released supply – on May 19. LayerZero releases 25.71 million tokens (5.07% of released supply) on May 20. KAITO releases 17.6 million tokens (4.7% of released supply) on the same day. The combined face value of these three unlocks is about $133.7 million, with Pyth representing the bulk.
Risk to watch: A token unlock is only bearish when the unlocked tokens are free from further lockup and the receiving parties have a track record of selling on the open market. Check the tokenomics contract for distribution conditions before assuming a price decline.
Pyth Network is a decentralized oracle protocol that aggregates price feeds from over 120 first-party publishers, including major exchanges and market makers. On May 19, the project releases 2.13 billion PYTH tokens valued at roughly $92.46 million. The distribution splits into four buckets:
Ecosystem growth and publisher rewards are often distributed to participants who may not immediately sell. Private sale tokens can carry longer lockup periods – sometimes with linear vesting over 12 months. The protocol development allocation is typically held by the team. The highest risk comes from the private sale portion if those investors are unfettered.
What to watch: If PYTH sees a spike in exchange inflows on May 19 and the price fails to hold above its 20-day moving average, the market is pricing in immediate selling. If volume stays normal and price drifts sideways, the unlock is already discounted.
LayerZero is an interoperability protocol connecting blockchains without traditional bridges. On May 20, it unlocks 25.71 million ZRO tokens worth about $32.65 million (5.07% of released supply). The distribution:
Strategic partner unlocks are the variable. If partners hold concentrated positions, they may take profits. The repurchased tokens are likely to be held. The core contributor allocation may have staggered vesting within the unlock itself.
KAITO is an AI-powered Web3 information platform aggregating social media, governance forums, and news data. On May 20, it releases 17.6 million KAITO tokens worth about $8.58 million (4.7% of released supply). The distribution:
The early backer portion is the highest risk factor. Early backers bought at lower valuations and have a clear profit incentive. The ecosystem growth allocation may be distributed over time to avoid price shock.
| Project | Date | Tokens unlocked | % of released supply | Approximate value |
|---|---|---|---|---|
| Pyth Network (PYTH) | May 19 | 2.13 billion | 36.96% | $92.46 million |
| LayerZero (ZRO) | May 20 | 25.71 million | 5.07% | $32.65 million |
| KAITO (KAITO) | May 20 | 17.6 million | 4.7% | $8.58 million |
Confirmation factors for a bearish outcome:
Invalidation factors that suggest a neutral or bullish resolution:
Traders should focus on bid depth and exchange order books on the unlock dates. Thin book liquidity amplifies the impact of any sell order. If the market maker for a token steps away, a sell order of even 1% of the unlock can move the price sharply.
Bottom line for traders: The $770 million unlock week does not guarantee a sell-off. The most important number is not the unlock size. It is the percentage of unlocked tokens that actually trades. In previous months, projects with relative unlocks above 30% of circulating supply saw an average price drop of 3–5% within 48 hours. Smaller unlocks under 10% showed no consistent pattern.
A simple approach to these events is to wait for the unlock to pass and observe price reaction over 24 hours. Buying the dip before the unlock assumes the unlock is bearish – a risky position if the market has already discounted the event. Instead, watch for exchange inflow data on May 19 and 20 using on-chain tools. If inflow stays flat, the market is absorbing the distribution.
LayerZero and KAITO unlock on the same day. That clustering can amplify selling pressure if both tokens have weak order book depth. Check the bid-ask spread and order book depth for ZRO and KAITO at the time of the unlock. A wide spread with thin bids increases execution risk for anyone trying to sell.
For more context on how supply events interact with network activity, see our crypto market analysis and the Ethereum (ETH) profile for comparisons with major unlocks in other protocols.
The remaining $636 million in unlocks during the week comes from smaller tokens such as MBG, YZY, and SOON. These tokens typically have lower liquidity. A risk-off sentiment across altcoins could turn a series of small unlocks into a broader sell wave. Monitor the total crypto market cap and BTC dominance during the week. If traders rotate out of altcoins, even well-structured unlocks can face headwinds.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.