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- A critical token unlocking event is approaching for Avalanche
- Despite increasing network activity, AVAX price continues to remain stable.
Avalanche (AVAX) will unlock millions of AVAX tokens within a month; What does this mean? Will it lower the price?
Millions of AVAX Tokens Will Be Unlocked Within a Month!
A significant amount of AVAX, the native token of the Avalanche network, will be unlocked next month. According to data, the lock of 9,541,800 AVAX tokens, which are worth over $168 million at the current valuation, will be opened in less than a month.
The unlocking event, planned for May 28th, will release approximately 3% of the 327 million AVAX tokens currently in circulation. According to a report, the unlocking of these tokens is expected to have a negative impact on AVAX’s price.
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Token Unlock Events Until 2024
Data shows that over half of the cryptocurrency supply is still locked. However, these locked tokens will gradually be released into the market over the next seven years, with the final unlocking event expected to take place on October 20th, 2030.
Despite Increased Network Revenue and Activity, AVAX Price Remains Stable
Activity on the Avalanche Network has increased in recent weeks. According to data, daily activity on the blockchain increased by 91.5% last month. Additionally, there was a surprising 386% increase in platform revenue during this period.
However, it can be said that this increase in network activity and revenue did not particularly affect AVAX’s market performance last month. According to COINOTAG data, AVAX experienced a price increase of approximately 1.7% in the last 30 days.
AVAX/USD 30 Minute Price Chart
One of the reasons for this disappointing market performance may be the unlocking of Avalanche’s tokens. It is observed that the amount of AVAX in circulation will rapidly increase due to the unlocking of tokens for early investors, contributors, and team members.
In addition, the consistent and significant unlocking of AVAX tokens over the next few years is expected to increase selling pressure on the cryptocurrency compared to other cryptocurrencies. This is because most investors want to make money from their assets by selling some of their locked tokens.