Avalanche price faces selling pressure from $213 million AVAX unlock
- Avalanche is set to unlock 9.54 million AVAX tokens on Friday.
- The AVAX unlock will increase the circulating supply by nearly 3%.
- Avalanche price is down 2% on the day, as market participants brace for the token unlock event.
Avalanche (AVAX) Layer 1 blockchain token is down 2% on the day. With the upcoming event, 9.54 million AVAX token unlock, the Layer 1 token’s circulating supply is set to increase, contributing to the rising selling pressure on the asset.
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AVAX token unlock draws near
Based on data from token.unlocks.app, Avalanche has an upcoming token unlock event on November 24, Friday. AVAX tokens, worth around $213.35 million are set to be unlocked. 9.54 million AVAX tokens represent 2.68% of the Layer 1 token’s circulating supply.
The unlocked tokens will be distributed to Strategic Partners, Founders, Team and airdropped to the community. The largest volume of tokens are for the team, 4.5 million AVAX worth $100.62 million.
A similar token unlock took place on August 26, 2023. In the week leading up to the event, AVAX price declined 7%, as market participants anticipated the rise in selling pressure to drive the Layer 1 token’s price lower, post the unlock.
AVAX unlock event details
Interestingly, AVAX price hit its three-month peak of $24 on Friday. The asset wiped out its gains over the weekend, dropping to $22.47, early on Monday. AVAX price yielded 142% for holders in the past month, in the marketwide rally, led by Bitcoin.
The upcoming token unlock is likely to contribute to the rise in AVAX token reserves across cryptocurrency exchanges. Higher AVAX reserves on exchanges are expected to increase selling pressure on the asset and drive the token’s price lower.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
