This Week’s Token Unlocks: Impact on the Market
This week, Avalanche (AVAX) is set to unlock $100 million worth of AVAX tokens, adding to the $120 million worth of crypto tokens that will be introduced in circulation. Let’s take a closer look at the impact this may have on the market.
Main Breakdown
- Avalanche will unlock 2.77% of the circulation supply, equivalent to 9.54 million AVAX tokens, potentially adding a selling pressure of $100 million.
- Strategic partners, Avalanche Foundation, the team, and airdrop winners will benefit from the token unlocks.
- The previous token unlock in May led to a 30% drop in AVAX price, breaching the long-term support at $10.44.
- Other token unlocks for this week include Space ID (ID) and Yield Guild Games (YGG), distributing tokens worth $3.62 million and $2.75 million respectively.
- Lido DAO (LDO) will unlock the remaining 0.97% of its supply, worth $13.86 million, on Aug. 25.
Hot Take
With the significant amount of tokens being unlocked this week, there is a possibility of market volatility and potential downward pressure on prices. Investors and traders should closely monitor the market and consider the potential impact of these token unlocks on the overall crypto market.
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