Major Token Unlocks in May 2026: $770 Million Floods Crypto Market

Brace for impact! May 2026 is set to be a whirlwind month for the crypto market with over $770 million in new tokens entering the fray. Major projects like Pyth Network, LayerZero, and Kaito are leading this charge, each release significant token supplies that could stir short-term volatility.

Kicking off this token fiesta is Pyth Network on May 19, with a release of 2.13 billion PYTH tokens. That's about $92.46 million worth of digital assets flooding in, accounting for 36.96% of Pyth's current supply. The plan? Split the release into network growth, publisher rewards, private sales, and protocol development. This isn't just a routine unlock. it's a strategic move that could influence network positioning and market reaction.

Following closely, LayerZero will unlock 25.71 million ZRO tokens on May 20, valued at $32.65 million. As an interoperability protocol, LayerZero aims to enhance cross-chain communication, and its token release targets strategic partners and core contributors. Meanwhile, Kaito also steps into the spotlight on the same day, releasing 17.6 million KAITO tokens worth roughly $8.58 million. With its AI-powered platform, Kaito aims to use this token unlock for network and network growth.

So, what does this mean for the broader crypto sphere? With massive unlocks like these, the short-term could see increased volatility, but they're effectively betting on long-term growth and integration. The skew tells a different story, suggesting that while some investors might be wary of dilution, others could view this as a buy opportunity.

Watch closely. With these unlocks, professional traders are pricing in more than just the immediate impact. The market's response could set the pace for the rest of the year.