Avalanche is getting closer to releasing a large portion of its native cryptocurrency AVAX, which comes at a time when the crypto market is under pressure. With AVAX down about 14% in the previous week and over 25% in the last 30 days, the upcoming token unlock is undoubtedly one to watch for Avalanche.
Avalanche will rapidly unlock AVAX at a cost of $103.
According to information from the platform Token Unlocks, the sensible contracts platform is preparing for a supply surge of 9.54 million AVAX tokens. This means that roughly $103 million in AVAX tokens will be immediately released into circulation. The event is slated for August 26 and will see the town increase its circulating supply by 2.77%.
Many Avalanche ecosystem players have received tokens as a result of the planned unlock. 2.25 million tokens will be distributed to strategic partners, 1.67 million to foundations, and 4.5 million to groups. Another 1.13 million AVAX are ready to be distributed via airdrops.
Avalanche has so far unlocked 379.79 million AVAX tokens, or 53% of the total. Another 340 million, or around 47%, remains unlocked.
AVAX price forecast
The core Avalanche team may see this as an opportunity for ecosystem development. Nonetheless, merchants are likely to keep a close eye on the market as a new product enters the market. This is due to the possible impact of such a huge launch on short-term value efficiency, particularly as promotion stress seeps in.
At 6 a.m. ET on Monday, AVAX was trading at $10.65, down 1.5% in the previous 24 hours. According to CoinGecko, the cryptocurrency’s 24-hour purchasing and selling volume was $88 million, a 12% increase.
Since reaching near $16 in mid-July of this year, the token’s value has declined. According to DeFiLlama data, the total value locked (TVL) within the Avalanche DeFi ecosystem has also decreased, decreasing more than 10% in the preceding seven days to $544 million.
and will suffer additional downward pressure as a result of the possibility of an erratic response to the unlock. Different market conditions may also be at work.