- Avalanche traded at $10.65, down 1.5% in the past 24 hours.
- The declines for AVAX, which has plummeted from highs near $16 in mid-July, come ahead of a $103 million token unlock.
- Token Unlocks shows Avalanche is set to unlock 9.54 million AVAX tokens on August 26.
Avalanche is closer to unlocking a significant chunk of its native token AVAX, with this coming at a time a crypto sell-off has put pressure on prices.
With AVAX price down nearly 14% in the past week and over 25% in the last 30 days, the impending token unlock is definitely one to watch for Avalanche.
Avalanche will soon unlock AVAX worth $103
Details on the platform Token Unlocks shows that the smart contracts platform is poised for a supply surge of 9.54 million AVAX tokens. That means over $103 million worth of AVAX tokens will soon be released into circulating supply. The event is scheduled for August 26 and will see the network add to its circulating supply by 2.77%.
The planned unlock has earmarked tokens for various Avalanche ecosystem players. About 2.25 million tokens will go to strategic partners, roughly 1.67 million to foundations and 4.5 million to teams. Another 1.13 million AVAX is set to be released via airdrops.
Avalanche has so far unlocked 379.79 million AVAX tokens, representing 53%. Another 340 million, or about 47%, remains locked.
AVAX price outlook
The core Avalanche team could see this as an opportunity for ecosystem growth. However, traders are inclined to keenly watch the market as the new supply enters the market. This is due to the potential impact of such a massive release on short term price performance, especially as selling pressure creeps in.
AVAX was at $10.65, down 1.5% in the past 24 hours at 6 am ET on Monday. According to CoinGecko, the cryptocurrency’s 24-hour trading volume stood at $88 million, up 12%.
The token’s value has traded lower since peaking near $16 in mid-July this year. DeFiLlama data shows the total value locked (TVL) in the Avalanche DeFi ecosystem has also shrunk, falling more than 10% in the past seven days to $544 million.
and could face further downward pressure given the prospects of a volatile reaction to the unlock. Other market conditions might also come into play.