Avalanche

Avalanche (<a href="https://finbold.com/cryptocurrency/avalanche" rel="noopener noreferrer nofollow">AVAX</a>) — among the leading layer-1 blockchains for <a href="https://finbold.com/liquidity-mining-definition" rel="noopener noreferrer nofollow">DeFi</a> and <a href="https://finbold.com/ethereums-role-in-web3-development" rel="noopener noreferrer nofollow">Web3</a> — could suffer a significant negative impact in price on August 26, as 9.54 million AVAX ($101.14 million, at press time prices) of new tokens will be put into circulation on this day.This massive token unlock amounts to 2.77% of Avalanche’s current circulating supply of 344.05 million AVAX, overcoming the total exchange volume of $83 million for the token in the last 24 hours from press time. Considering uncertain times, a sell-off event could drive the project’s price further down. <img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/c9e3fcd91ff445748549b87d8d9dc2f4.jpg" />Avalanche (AVAX) tokenomics (left) and the token unlock on August 25 9pm GMT-3 (right). Sources: CoinMarketCap and TokenUnlocks.appFrom the total unlocked amount, this is how distribution will take place:<ul><li>Strategic Partners (23.5%): 2.25 million AVAX ($23.99 million)</li><li>Foundation (17.5%): 1.67 million AVAX ($17.77 million)</li><li>Team (47%): 4.5 million AVAX ($47.97 million)</li><li>Airdrop (12%): 1.13 million AVAX ($11.99 million)</li></ul>Avalanche currently has an estimated annual inflation of 24.5%, <a href="https://token.unlocks.app/avalanche-2" rel="noopener noreferrer nofollow">according</a> to Token Unlocks.<h2 id="header-0">Avalanche price analysis </h2>Avalanche is exchanging hands at $10.53 by press time, with a daily drop of 2.72% in the last 24 hours. AVAX has lost over 23% of its value in the month (last 30 days), moving from $13.75 to current prices. This indicates that the market could have been already pricing the tokens unlock.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/1e98da101a724535973a6b5bc93bd479.jpg" /><a href="https://finbold.com/cryptocurrency/avalanche" rel="noopener noreferrer nofollow">AVAX</a> 1-month price chart. Source: FinboldThe order book for the highest volume pair (<a href="https://www.binance.com/en/trade/AVAX_USDT?ref&#61;40896146&amp;theme&#61;dark&amp;type&#61;spot" rel="noopener noreferrer nofollow">AVAX/USDT</a> on Binance) has around 330,520 AVAX buying orders from $10 to $2.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/a32cf067c69541eaaedf3f04cf14176c.jpg" />AVAX/USDT order book. Source: <a href="https://www.binance.com/en/trade/AVAX_USDT?ref&#61;40896146&amp;theme&#61;dark&amp;type&#61;spot" rel="noopener noreferrer nofollow">Binance</a>Meaning that, if only 3% of the unlocked total on August 26 is sold in a single order on Binance for USDT, the order book would be completely whipped, driving Avalanche’s price to $2. This is an unlikely scenario but helps to demonstrate the weight of this upcoming event.All things considered, it is impossible to know the real impact on this <a href="https://finbold.com/category/cryptocurrency-news/" rel="noopener noreferrer nofollow">cryptocurrency</a>’s price, with more tokens being put into circulation. And price action will depend on further developments related to Avalanche, as well as the general sentiment on the wider <a href="https://finbold.com/cryptocurrencies" rel="noopener noreferrer nofollow">crypto</a> and macroeconomic landscape.Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.Read more cryptocurrency news on <a href="https://finbold.com/category/cryptocurrency-news/?utm_source&#61;CMC&amp;utm_medium&#61;social&amp;utm_campaign&#61;CMC&amp;utm_content&#61;long" rel="noopener noreferrer nofollow">Finbold.com</a>.

Avalanche price prediction for August 26 ahead of massive token unlock

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