AVAX Token Unlock :
Are your preparation adequate for the substantial unlocking of AVAX token scheduled for this week?
Coin unlocking involves the addition of a considerable number of coins to circulation, leading to an increase in the coin supply. The augmented coin supply significantly impacts price fluctuations. Today, our focus will be on coins poised for a substantial unlocking this week.
If you’re engaged in trading this particular coin, exercise caution as unlockings can wield significant influence on its price. The coin under discussion is a prominent project within the cryptocurrency space, boasting a market capitalization of $3.7 billion. This upcoming Saturday, August 26th, Avax is set to undergo an unlock worth $102 million, equivalent to approximately 2.75% of its present market share. As of now, Avax is trading at $10.77, experiencing a 23% decline over the last 30 days. Additionally, the 24-hour trading volume has also decreased by 28%.
What is AVAX: –
Avalanche operates as a layer-one blockchain, functioning as a platform for decentralized applications and customized blockchain networks. This blockchain stands as a contender to Ethereum, aspiring to surpass it as the premier blockchain for smart contracts. It seeks to achieve this by offering a higher transaction output, capable of handling up to 6,500 transactions per second, all while maintaining scalability.
AVAX blockchain activity decline: –
Over the last month, the level of activity on Avalanche’s network has witnessed a decline. Despite a red price chart, signs of a trend reversal appeared plausible. Like most cryptocurrencies, Avalanche (AVAX) experienced a significant price correction amidst the broader decline in the cryptocurrency market. This price decrease coincided with the week leading up to the impending token release on the blockchain, causing concerns among investors—blame the unfortunate timing.
Notably, Artemis’ analysis revealed a decline in Avalanche’s network activity, with the number of daily active addresses on the blockchain also decreasing during the past month. The daily transactions followed a similar trajectory until August 12th, when an upward trend became apparent. The substantial drop in Total Value Locked (TVL) serves as evidence of the blockchain’s diminishing value.
The price movement of AVAX remained discouraging, with a seven-day decline exceeding 12%, as reported by CoinMarketCap. In the next six days, AVAX is expected to unlock 2.75% of its total supply—a staggering $102 million, according to a tweet from Token Unlocks. Generally, the asset’s value tends to decrease as the circulating supply rises. Interestingly, this pattern didn’t hold true for AVAX.
AVAX Analytics and Coin Distribution:
The tweet suggests that AVAX’s price has historically risen during prior unlocking events. However, given the prevailing negative sentiment in the market, a price decline becomes a possibility. According to LunarCrush, negative sentiment regarding AVAX surged by 63% in the previous day. Based on Avalanche analytics, approximately 99.3241% of account holders possess between $0 and $1,000 worth of AVAX tokens, accounting for approximately 68.3k holders. Around 0.6498% of account holders hold AVAX tokens valued between $1,000 and $100,000, comprising a total of 485 holders. Only a minuscule fraction, constituting 0.0261% of all accounts, holds AVAX tokens worth more than $100,000.
Conclusion: –
The next Avax unlocking event will be a turning point for the coin. The delicate balance between supply, demand, and market sentiment takes center stage this week as the crypto world prepares for more currency circulation. Obstacles stand in the way of Avalanche’s ambitions to overtake Ethereum, as seen by recent network activity dips and price adjustments.
Although present unfavorable market conditions threatens this pattern, historical unlocking tendencies point to eventual price increases. Stakeholders have a challenging environment to traverse in the face of this uncertainty. The complexity is increased by the holder distribution’s reflection of a wide variety of viewpoints. Avax’s resiliency and development potential in this constantly changing industry will be revealed as the week progresses by the combination of unlocking dynamics and market mood.
