2023-08-22 00:10:13
Avalanche will unlock 9.54 million AVAX tokens; price may drop
CriptoFácil – One of the leading blockchains, is set to unlock 9.54 million AVAX tokens on August 26, which is equivalent to 2.77% of the total in circulation, or around US$103 million.
This unlock covers 2.25 million tokens for strategic partners, 1.67 million for foundations, 4.5 million for teams, and 1.13 million for distribution via airdrops. Currently, the price of AVAX is $10.81, with a trading volume of approximately $80 million in the last 24 hours.
In addition to Avalanche, other currencies are also about to unlock their reserves. Liquid staking protocol Lido (LDO) and the token behind Yield Guild Games DAO (YGG) are also planning to release their reserves this week, increasing the supply of these assets in the market.
Token unlocks represent the gradual release of previously locked coins to prevent early investors or project team members from liquidating large amounts of tokens all at once.
In the case of Lido DAO (LDO), the governance token of the Lido staking protocol will unlock 8.5 million LDO tokens, worth $14.2 million, equivalent to about 0.97% of the total supply. These tokens will be distributed among investors who already hold over 300 million LDO tokens.
unlocking tokens
While token unlocks may raise concerns in the market, many participants are already aware of and prepared for these events.
Observing the previous AVAX unlocking in May, it is observed that the market reacted relatively positively, demonstrating that the most sophisticated players have already adjusted their strategies to deal with this scenario.
However, it is important to highlight that token unlocks can affect prices, but the impact is multifaceted and not always direct. According to an analysis by The Tie, market behavior in relation to these events is complex and variable.
On average, prices tend to decline before tokens are unlocked, but the overall effect may depend on the amount of liquidity released and market circumstances.
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