Avalanche’s AVAX Token Unlock Worth $103M Puts Pressure on Price

1:09 pm
August 21, 2023

Summary: The price of Avalanche’s native token, AVAX, has been experiencing declines leading up to a significant token unlock event. The Token Unlocks platform reveals that Avalanche is set to unlock 9.54 million AVAX tokens on August 26, which translates to over $103 million worth of tokens being released into circulation. As the cryptocurrency market undergoes a sell-off, the impending token unlock has raised concerns about its potential impact on AVAX price performance.

Avalanche traded at $10.65, reflecting a 1.5% decrease in the past 24 hours. AVAX has dropped nearly 14% in the last week and over 25% in the last 30 days following its highs near $16 in mid-July. The upcoming token unlock has contributed to the pressure on Avalanche’s token price.

Avalanche to Unlock AVAX Tokens Worth $103 Million

According to Token Unlocks, Avalanche’s smart contracts platform is set to unlock 9.54 million AVAX tokens, equivalent to over $103 million, on August 26. This unlock event will increase the circulating supply of AVAX by 2.77%. The tokens will be allocated to various players in the Avalanche ecosystem, including strategic partners, foundations, teams, and airdrops. Currently, Avalanche has unlocked 379.79 million AVAX tokens, representing 53% of the total supply, while 340 million tokens remain locked.

AVAX Price Outlook

While the Avalanche team may view the token unlock as an opportunity for ecosystem growth, traders are attentively monitoring the market as the new supply enters circulation. The release of a large number of tokens could lead to short-term price volatility, especially with the potential selling pressure. At the time of writing, AVAX was valued at $10.65, reflecting a 1.5% decline in the past 24 hours. CoinGecko reported a 12% increase in the cryptocurrency’s 24-hour trading volume, which stood at $88 million. Additionally, Avalanche’s DeFi ecosystem has experienced a decline in total value locked, down more than 10% in the past week to $544 million according to DeFiLlama data.

FAQs

What is the token unlock event for Avalanche?

The token unlock event for Avalanche refers to the release of 9.54 million AVAX tokens into circulation on August 26. These tokens, worth over $103 million, will be allocated to various participants in the Avalanche ecosystem.

What impact can the token unlock have on AVAX price?

The token unlock may result in short-term price volatility for AVAX. Traders are closely watching the market as the new supply enters circulation, with the potential for increased selling pressure.

How has AVAX price performed recently?

AVAX has experienced declines in the past week, with a nearly 14% decrease, and a decline of over 25% in the last 30 days. The token reached highs near $16 in mid-July before the downward trend.

What is the current circulating supply of AVAX?

Avalanche has unlocked 379.79 million AVAX tokens, which represents 53% of the total supply. The remaining 340 million tokens are still locked.

What is the current value of AVAX’s total locked value in the Avalanche DeFi ecosystem?

As of now, the total value locked (TVL) in the Avalanche DeFi ecosystem is $544 million, which has decreased by more than 10% in the past seven days.


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