Axie Infinity (AXS) Token Unlock Could Impact Price
Axie Infinity (AXS) has gained popularity as one of the leading “play-to-earn” blockchain games in the cryptocurrency market. With its financial nature, the project has attracted investors and speculators, gathering hundreds of thousands of players. However, the native token of Axie Infinity may face a significant impact on its price due to a large token unlock event.
Massive Token Unlock Event
On October 20, 15.13 million AXS tokens will be put into circulation, which amounts to 11.5% of the current circulating supply of 141.31 million AXS. The total exchanged volume for the token in the last 24 hours is $40.12 million, surpassing the amount of new tokens to be unlocked. This raises concerns about a potential sell-off event that could further drive down the price of Axie Infinity.
Token Distribution
- Team (40%): 6.08 million AXS ($25.91 million)
- Advisors (3.66%): 554,750 AXS ($2.36 million)
- Play to Earn (22%): 3.38 million AXS ($14.38 million)
- Ecosystem Fund (11%): 1.69 million AXS ($7.19 million)
- Staking Rewards (23%): 3.43 million AXS ($14.59 million)
Axs Price Analysis
As of now, Axie Infinity is trading at $4.27 with a daily increase of 1.02% in the last 24 hours. However, the token has lost around 15% of its value in the past month, indicating that the market may have already priced in the upcoming token unlock event.
The order book on Binance for the AXS/USDT pair shows limited buying orders, suggesting that if a significant portion of the unlocked tokens were sold in a single order, it could lead to a drastic drop in price. However, it is important to note that this scenario is unlikely but highlights the potential impact of the token unlock.
Unpredictable Impacts
It is difficult to determine the exact impact on AXS price with more tokens being unlocked. The price will depend on future developments related to Axie Infinity, as well as the overall sentiment in the cryptocurrency market and macroeconomic landscape.
Hot Take: Uncertainty Surrounds Axie Infinity’s Token Unlock
Axie Infinity’s upcoming token unlock event raises concerns about its impact on AXS price. With a significant number of new tokens being put into circulation, there is a possibility of a sell-off event and further price decline. However, the true consequences remain uncertain, as they depend on various factors such as market sentiment and project developments. Traders and investors should closely monitor these developments to make informed decisions about Axie Infinity and its native token.
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