Avalanche (AVAX) dipped over 3% this week, even as the rest of the crypto market saw gains.
Avalanche (AVAX) dipped over 3% this week, even as the rest of the crypto market saw gains. This underperformance coincides with a major unlock event scheduled for Thursday, releasing 9.5 million AVAX tokens worth $365 million into circulation.
This unlock translates to a 2.6% increase in the total AVAX supply, potentially diluting its value. The unlocked tokens will be distributed to team members, strategic partners, the ecosystem development foundation, and airdrop recipients.
Historically, large token unlocks often lead to price declines within two weeks due to an imbalance between supply increase and investor demand. This trend suggests AVAX could face further pressure as the event unfolds.
AVAX is currently trading at $38.10, after a rally in the last quarter of 2023, which saw the token trade from $9.1 to $48.3. However, AVAX is still trading significantly below its all-time highs of $136. Approximately 51% of all AVAX tokens are currently circulating, with the blockchain trading at a valuation of $14 billion.
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