Avalanche (AVAX) Faces Potential Price Drop on August 26 Due to Massive Token Unlock
Avalanche (AVAX), a leading layer-1 blockchain for DeFi and Web3, may experience a significant negative impact on its price on August 26. This is because a whopping 9.54 million AVAX, worth $101.14 million at current prices, will be released into circulation on that day. This unlock represents 2.77% of Avalanche’s total circulating supply, surpassing the token’s exchange volume of $83 million in the past 24 hours.
Key Points:
– Strategic Partners will receive 23.5% of the unlocked tokens.
– The Foundation will receive 17.5%.
– The Team will receive 47%.
– Airdrop recipients will receive 12%.
– Avalanche currently has an estimated annual inflation rate of 24.5%.
Avalanche’s price has already experienced a decline, dropping by 2.72% in the past 24 hours and over 23% in the last month. The order book for the AVAX/USDT pair on Binance shows a significant number of buying orders, with a potential scenario where the price drops to $2 if only 3% of the unlocked tokens are sold in a single order.
In conclusion, the impact of the token unlock on Avalanche’s price remains uncertain. It will depend on future developments within the Avalanche ecosystem, as well as the overall sentiment in the cryptocurrency and macroeconomic landscape.
Hot Take
The massive token unlock event for Avalanche (AVAX) on August 26 could potentially lead to a significant price drop. With such a large number of tokens being released into circulation, the market may experience a sell-off, pushing the project’s price further down. However, the exact impact remains uncertain and will be influenced by various factors, including the wider crypto market and macroeconomic conditions. Investors should carefully monitor the situation and consider the potential risks before making any investment decisions.
By
By
By
By