Avalanche (AVAX) seems to be bracing for a challenging period in the coming week. As of today, a token unlock worth approximately $400 million is expected to take place. This is identified as part of the Genesis distribution on the Avalanche side, extending up to the usual proof-of-stake (PoS) issuance period.
AVAX Unlock Event Approaching
On February 22nd, 9.54 million AVAX tokens valued at $376.61 million will be unlocked. The data regarding the unlock was provided by TokenUnlocksApp on February 17th.
In the next seven days, locks worth $433.94 million will be released, with over 86% of them being AVAX tokens, which brings a different dimension to the event on this front.
The upcoming massive unlock signifies 2.6% of the current circulating supply of 367.51 million AVAX on the Avalanche side. Furthermore, compared to the 24-hour exchange volume of $13.80 billion provided by CoinMarketCap, the volume remains 27 times larger.
Distribution of Avalanche Token Unlock
Upon examining the distribution of tokens to be released as a result of the unlocks, the ‘Team’ will receive 47% of the tokens at the unlock. Following the February 22nd date, members will be able to sell 4.50 million AVAX valued at $177.62 million.
Additionally, AVAX’s strategic partners and foundation treasuries will receive 2.25 million and 1.67 million AVAX, respectively. Considering these amounts, even these alone will empower the organizations to hold a sales threat worth over $154.6 million at today’s valuation. The community will also see a distribution of 1.13 million AVAX (worth $44.40 million).
AVAX Price Analysis and History
While all this is happening, AVAX is currently trading at $39.68. It is noted that Avalanche has seen an impressive increase since October 2023, coinciding with the rise in locked funds in DeFi.
Looking back, the impact of AVAX’s unlock on August 26th had a negative effect on the altcoin. Avalanche dropped from its peak of $12.88 on August 1st to $10.81 on August 29th and further to $8.90 by September 23rd.
From another perspective, AVAX reflected a loss of over 30% in value since August 1st, and following the unlock, it experienced an 18% loss within a month after reaching a local peak.
To summarize, past unlock events have had adverse effects on AVAX, and investors would be wise to manage their investments carefully in the days following the upcoming massive unlock.
