Avalanche to Unlock 9.54 Million AVAX Coins Worth $99 Million
The cryptocurrency platform Avalanche is set to unlock 9.54 million AVAX coins this Saturday, which could impact market liquidity and trigger a price decline for the token. The assets to be unlocked represent approximately 2.8% of AVAX’s circulating supply and are worth around $99 million. Over the next year, Avalanche plans to increase the circulating supply by 24.5%, and more than 50% of AVAX’s total supply is still locked. Adding more assets into circulation can decrease their scarcity and potentially lower their price in the short term.
Previous Unlock and Current Price
Avalanche previously unlocked the same amount of AVAX coins on May 28, resulting in a slight price decrease initially but a subsequent upward trend. However, the price of AVAX saw a significant drop in mid-August during the crypto market crash, bringing its value down by 50% compared to January levels. Currently, AVAX is valued at $10.20.
Impact on Market Liquidity and Price
- Avalanche’s unlock of 9.54 million AVAX coins could lead to decreased market liquidity.
- Increased supply of AVAX may cause a short-term price decline for the token.
- The circulating supply of AVAX is expected to increase by 24.5% over the next year.
- More than 50% of AVAX’s total supply remains locked.
- Adding assets into circulation reduces their scarcity and can potentially lower their price.
Hot Take
The unlock of 9.54 million AVAX coins by Avalanche could have significant implications for market liquidity and the token’s price. With over 50% of AVAX’s total supply still locked, the increase in circulating supply may impact the scarcity and value of the token. It remains to be seen how the market will react to this unlock, but it is important to monitor the potential short-term price decline and overall market sentiment towards AVAX.
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