This week, Avalanche will unlock $100 million worth of AVAX tokens. In total, more than $120 million worth of crypto tokens will be introduced in circulation throughout the week. But hat will be the impact on the market?
Nearly $500 million worth of crypto tokens were scheduled to unlock in August. However, this article will delve into the major token unlocks for this week.
Avalanche (AVAX) Team Set to Release $100 Million Worth of Tokens
According to TokenUnlocks, Avalanche will unlock AVAX tokens on Aug. 26, consisting of 2.77% of the circulation supply. As a matter of fact, unlocking 9.54 million AVAX tokens might add a potential selling pressure of $100 million. The community believes that it is quite a significant number.
Strategic partners, Avalanche Foundation, the team, and airdrop winners are the beneficiaries of the upcoming Avalanche token unlocks.
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Impact on AVAX Price?
On May 28, Avalanche unlocked a similar portion of the token. The screenshot below shows that the price of the AVAX token plummeted by more than 30% post-unlock. However, it took the support at the $10.44 price range and bounced back.
Zooming out, the chart shows that $10.44 has been an essential long-term support on a weekly time frame. AVAX has mostly remained above that price range since January 2021. If this event brings a similar fall to that of May 2023 token unlocks, then AVAX will breach the support of $10.44
Eventually, the long-term support at $10.44 will act as a resistance, hindering the future upward movement of the AVAX token.
Other Token Unlocks for This Week
As of writing, token unlock for Space ID (ID) is scheduled in around nine hours. The project will unlock ID tokens consisting of 6.46% of the circulating supply.
Altogether, over 18.49 million ID tokens, worth around $3.62 million, will be distributed to airdrop winners, ecosystem funds, the foundation, and for marketing efforts.
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Moreover, Yield Guild Games (YGG) will unlock 6.60% of the circulating supply worth around $2.75 million on Aug. 27. The project will allocate 12.22 million YGG tokens to the community, investors, treasury, and founders.
And the final cliff unlock for Lido DAO (LDO) will happen on Aug. 25. The screenshot below shows that the project’s 99% of the supply is already unlocked.
The remaining 0.97% of the supply, worth around $13.86 million, will be unlocked on Aug. 25. Lido DAO will distribute 8.50 million LDO tokens to investors.
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Source: https://beincrypto.com/100m-token-unlock-this-week/