AVAX Slips, Adding Tension To $365-M Token Unlock Drama
The post AVAX Slips, Adding Tension To $365-M Token Unlock Drama appeared on BitcoinEthereumNews.com.
The price of Avalanche’s AVAX token has dipped by 11% in the past week, bucking the bullish trend in the broader cryptocurrency market. This comes amidst a $365 million unlocking event that increased the token’s circulating supply by 2.6%. Experts suggest both short-term challenges and long-term opportunities for AVAX. Unlocking Event Triggers AVAX Price Dip Source: Token.Unlocks Token.Unlocks data indicates that on Thursday, locked-up tokens valued at approximately $303 million will be released from vesting and put into circulation. On February 15th, a significant unlocking event saw 9.5 million AVAX tokens, worth roughly $365 million, released from a vesting period. This influx of previously locked-up tokens coincided with a price decline for AVAX, which fell from $40.32 to its current price or nearly $37. This aligns with historical trends, as a 2023 report by The Tie found that large unlocking events often lead to price drops within two weeks due to supply outpacing demand. AVAX price in the red. Source: Coingecko Analyst Opinions Diverge Despite the recent dip, some analysts remain optimistic about AVAX’s future. The Tie’s report, while acknowledging the short-term price pressure, highlights the Avalanche network’s growing activity, fueled by popular NFT collections like Dreamheadz and Dokyoworld. The increased engagement within the NFT space is seen as a positive indicator for long-term adoption and potential price appreciation. TSM’s @theblitzapp Subnet launched, where all premium subscriptions on the platform now flow on-chain, with more features to come later in Q1 https://t.co/dTb52vkFlw — Avalanche 🔺 (@avax) February 5, 2024 Furthermore, analysts point to AVAX’s outperformance compared to specific peers like Celestia and Solana in recent days. This suggests some resilience in the face of the unlocking event and potential buying pressure despite the overall price dip. Some analysts even predict a possible climb to the $40 mark by the end…
Filed under: News - @ February 22, 2024 12:22 am