2023-08-24 00:10:11
Survey: 99% of Avalanche Holders (AVAX) are at a loss
CriptoFácil – The price of the token (AVAX) has been experiencing a decline since the peak of mid-July, when it reached US$ 15.94, and reached US$ 10.19 at the time of writing.
According to analyst Ekta Mourya, the decrease in the value of the smart contract platform’s token can be attributed to the impending token unlock event and a massive drop in the percentage of AVAX holders who find themselves with unrealized profits.
The previous token unlocking event added to the selling pressure on AVAX, sending the token to its lowest point on June 10 at $10.04.
Nearly 21.82% of the token price was lost in the two weeks after the May 28 unlock. A similar impact is expected for this Saturday’s AVAX token unlock. According to data from cryptocurrency intelligence tracker IntoTheBlock, the percentage of profitable AVAX holders has taken a huge hit.
In the week starting Monday (21), 99.49% of AVAX holders are losing money or facing unrealized losses, 0.51% are at breakeven and only 160 addresses have unrealized profits.
Avalanche (AVAX) down
Analysts at IntoTheBlock note that the AVAX price has already experienced similar price levels in June and December 2022. However, this is the first time that almost all AVAX holders are holding the DeFi token at a loss.
“A key event for Avalanche this week is the token unlock scheduled for Saturday, August 26th. Almost 2.77% of the token’s circulating supply, equivalent to 9.54 million AVAX tokens, will be unlocked in less than three days, according to data from token.unlocks.app,” said Ekta Mourya.
The previous event on May 28 unlocked a similar percentage of the token’s circulating supply. In response to the unlock, the price of AVAX dropped 22% in less than two weeks.
The price of AVAX dropped from $14.89 on May 28th to $11.66 on June 12th and reached its lowest point in June at $10.04.
Mourya points out that if the trend repeats, which is likely due to a similar volume of tokens and distribution, the AVAX price could drop further.
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