The cryptocurrency platform that uses smart contracts to support various blockchain projects – Avalanche – will unlock 9.54 million AVAX coins this Saturday (August 26).
Such a development could considerably impact market liquidity and trading volume, thus triggering a price decline for the token.
- The assets that will be unlocked are worth approximately $99 million (calculated at current rates) and represent around 2.8% of AVAX’s circulating supply.
- According to data from Token Unlocks, the platform plans to increase the circulating supply by 24.5% over the next year. Over 50% of AVAX’s total supply remains locked as of the moment.
- It is worth mentioning that adding more assets into circulation makes them less scarce and, in turn, could drop their price in the short term.
- Avalanche’s previous unlock occurred on May 28 and included the same token amount. The price of AVAX plunged slightly in the hours after the announcement but headed north in the following days.
- It traded at above $12 throughout the whole month of July before significantly falling in mid-August during the crypto market crash that affected many other digital currencies.
- AVAX is currently worth $10.20, a 50% decline compared to the levels at the end of January.
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