Token

Impact

Avalanche

Coin

Token unlockings in the crypto <a href="https://newslinker.co/category/finance/" rel="noopener noreferrer nofollow">market</a> have often resulted in an increase in the circulating supply of altcoins, leading to a decrease in their unit prices. The massive price performance difference between <a href="https://en.coin-turk.com/crypto-markets-may-carnage-ends-major-developments-and-forecasts-for-avalanche-avax/" rel="noopener noreferrer nofollow">AVAX</a> Coin and <a href="https://en.coin-turk.com/the-future-of-solana-coin-price-predictions-for-november/" rel="noopener noreferrer nofollow">SOL</a> Coin should also be evaluated from this perspective. We are discussing the possibility of AVAX experiencing a challenging period with an inflation rate of nearly 40% since the beginning of the year. And indeed, it happened.
<h2 style="text-align: justify" id="token-unlockings-in-november">Token Unlockings in November</h2>
Altcoins have two different supplies: circulating supply and maximum supply. The circulating supply represents the balance that can be held in exchanges and wallets, while the maximum supply represents the maximum circulating supply that will be reached through periodic token unlockings. The circulating supply increases periodically with token unlockings.
What happens if a cryptocurrency fails to generate investor demand for its token unlockings? If the supply exceeds the demand, the price of the asset is expected to decrease. Indeed, this is exactly what happens because demand is the main factor that determines the price in the crypto ecosystem. In cases of excessive demand or lack of demand, token prices may exceed or fall below their fair value.
In November, we will witness approximately $400 million worth of token unlockings. The majority of these unlockings will be in HFT, SUI, and OP Coin.
<img src="https://coin-turk.com/wp-content/uploads/2023/11/Kasim-Ayi-Kilit-Acilislari.png" alt="" width="639" height="311">
The table above shows the dates and other details.
<h2 style="text-align: justify" id="avalanche-avax-supply-and-price">Avalanche (AVAX) Supply and Price</h2>
It might be useful to discuss this topic specifically in relation to AVAX Coin. The chart below shows how the supply has been increasing in 2023. The circulating supply, which was 338 million at the beginning of 2023, is now over 400 million and will continue to increase until the end of the year. By the end of 2024, the supply is expected to reach 480 million.
<img src="https://coin-turk.com/wp-content/uploads/2023/11/AVAX-Coin-Kilit-Acilis-Takvim.png" alt="" width="1222" height="647">
The selling pressure is stronger due to the portion allocated to group staking revenue, foundations, and strategic partnerships in token unlockings. The increase in circulating supply from 97 million in 2021 to 263 million at the beginning of 2022 demonstrates a departure from triple-digit prices.
<img src="https://coin-turk.com/wp-content/uploads/2023/11/AVAXUSDT_2023-11-03_22-34-42.png" alt="" width="1814" height="847">
In conclusion, closely monitoring token unlockings in both the short and long term should be an important detail in determining unit price targets for tokens. When setting price targets for altcoins over the course of several years, you can determine your unit price target by considering the future supply and expected market value. Continue Reading: <a href="https://en.coin-turk.com/the-impact-of-token-unlockings-on-altcoin-prices-avax-coin-vs-sol-coin/" rel="noopener noreferrer nofollow">https://en.coin-turk.com/the-impact-of-token-unlockings-on-altcoin-prices-avax-coin-vs-sol-coin/</a>

The Impact of Token Unlockings on Altcoin Prices: AVAX Coin vs SOL Coin

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