Key Points:
- Avalanche will unlock 9.54 million AVAX tokens worth over $100 million on August 26.
- The release will increase circulating supply which may impact short-term prices.
- Avalanche has completed periodic token unlocks to support ecosystem growth.
Avalanche, a leading smart contract blockchain platform, is poised to release millions of its native AVAX tokens in a scheduled token unlock event this week. The unlocking of the tokens will introduce more liquidity into the market for the fast-growing Avalanche ecosystem.
Upcoming August Unlock of AVAX Tokens
According to the Token Unlocks analytics platform, Avalanche will unlock 9.54 million AVAX tokens on August 26. At the current price, these tokens are valued at over $103 million. The unlocked tokens include allocations for strategic partners, foundations, team members, and airdrops.
Token unlocks refer to the release of previously locked tokens or restricted from circulating supply. This scheduled unlock by Avalanche marks an important milestone for expanding available liquidity to advance the network’s development.
Impact on AVAX Price and Supply
The 9.54 million AVAX tokens represent 2.77% of the total maximum supply. So far, 53% of the total AVAX supply has been unlocked already. Per Token Unlocks, 340.20 million tokens remain locked for future scheduled releases.
The incoming liquidity from the token unlock may put downward pressure on AVAX’s price, which is currently trading around $10. However, the increased circulated supply will also make AVAX more accessible and attractive to new users and decentralized applications.
AVAX has seen an over 50% daily increase in trading volume in anticipation of the unlock event. But its market capitalization has declined over the past month as the crypto market suffers a broader downturn.
Previous Unlocks of AVAX Tokens
This August unlock mirrors a similar-sized 9.54 million AVAX token release by Avalanche on May 28 earlier this year. That previous batch was also valued at around $103 million at the time of unlock.
Avalanche has consistently unlocked new token allocations to balance available supply and network growth. The scheduled unlocks enable orderly monetary base expansion as the platform scales.
The upcoming token unlock represents an important milestone for Avalanche as it continues gaining developer adoption. The release of locked AVAX will provide new resources to expand the burgeoning network and make its native token more accessible. While short-term price fluctuations are possible, the overall outlook remains positive for Avalanche’s ecosystem growth.
