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$367M Worth of Avalanche (AVAX) Will Be Unlocked This Week

3 months ago
Bitcoin Ethereum News
$367M Worth of Avalanche (AVAX) Will Be Unlocked This Week

Key takeaways:

  • $367 million worth of new AVAX tokens (9.54 million coins) will be unlocked on February 22nd, representing 2.6% of total supply.
  • The unlocked AVAX is being distributed to the Avalanche team, partners, foundation, and community
  • Past AVAX unlocks preceded both price rallies and sell-offs, showing the potential for volatility depending on broader market conditions.
  • AVAX dipped 2.11% in the last 24 hours but algorithms see a 7.96% rebound to $42.51 next month.

The Avalanche blockchain network is bracing for a major event that could shake up cryptocurrency markets. On February 22nd, a huge number of new Avalanche coins worth around $367 million will be unlocked, and available to buy and sell.

This release of 9.54 million AVAX tokens, representing 2.6% of Avalanche’s total token supply, is part of the network’s predetermined schedule to gradually distribute all its cryptocurrency from when the network launched. However, the huge dollar value of this release has investors and experts closely watching to see how it may impact AVAX’s price and broader market movements.

9.54m worth of AVAX waiting to be unlocked (Source: TokenUnlocksApp)

As for the distribution of the unlockef tokens, the majority of it will be received by key players in the Avalanche ecosystem. The biggest portions will go to the core Avalanche team, which will be receiving a 4.5 million AVAX worth $177 million. Followed by the strategic partners with 2.25 million AVAZ valued at around $89 million, and the Avalanche Foundation with 1.67 million worth $66 million. However, $44 million worth will be given to the wider Avalanche community.

Looking back, previous AVAX releases have had mixed impacts. Last year’s November unlock of around $198 million worth saw AVAX actually rally over 127% in the same month as market sentiment was very positive. But earlier 2023 releases did seem to briefly correlate with AVAX price drops of 6-12% as the new supply hit markets.

That being said, the impact this week will likely depend on overall crypto market conditions at the time. If markets are already selling off, adding $367 million in new AVAX supply could exacerbate downward pressure. However, if bullish momentum remains strong, the release may get shrugged off.

Ultimately, how significant this AVAX release will end up depends on Avalanche’s ability to keep growing its user base, attract developers to build on its platform, and drive real-world adoption. While transactions spiked in late 2023’s rally, volumes have since returned to more moderate levels.

If Avalanche continues executing on its technology roadmap and vision, this week’s unlock may be just a temporary volatility event. But if adoption stalls, the huge amount of new AVAX supply could amplify selling pressure.

Moreover, crypto investors will be watching closely as this major Avalanche event unfolds in the coming days and weeks.

Avalanche (AVAX) Price Movement

The Avalanche (AVAX) has seen a slight decrease in the last 24 hours. The token is currently trading at $39.19, a 2.11% decrease from when it was trading at $40.54 yesterday, with a 24 hours trading volume of $923.48 million and a market cap of over #14 million.

However, algorithm has predicted a 7.96% increase from its current price, hiting $42.51 by next month.

Source: https://coincodex.com/article/38011/367m-worth-of-avalanche-avax-will-be-unlocked-this-week/