As a major development for the cryptocurrency market, Avalanche (AVAX) is gearing up for a token unlock event scheduled for August 26. The unlock event, followed by Token Unlocks, will mark the launch of $110 million worth of AVAX tokens, accounting for 2.77% of the total AVAX supply. Here are the details…
The upcoming unlock event is important for Avalanche
The upcoming unlock event is of great importance to the AVAX ecosystem and represents a crucial step in the growth and expansion of the platform. Avalanche Blockchain, with its native token AVAX, was quickly recognized as a promising player in the decentralized finance (DeFi) space. The distribution of unlocked AVAX tokens will be distributed to various categories, each of which contributes to the continuous development of the platform. Strategic partners will receive 2.25 million AVAX tokens, which corresponds to approximately $24.21 million. Foundations will receive 1.67 million AVAX tokens, further contributing to the solid foundation of the platform. 4.5 million AVAX tokens worth $48.42 million will be allocated to the team behind Avalanche, while airdrop participants will receive 1.13 million AVAX tokens.
This move follows in the footsteps of the previous AVAX unlock event in May, which was positively received by the market. The reaction of the market underlines the level of sophistication among participants waiting for token unlocking and adapting to it. AVAX’s journey through the market has been dynamic. After surging as high as $140 during the bull run of November 2021, it plummeted significantly in line with the broader cryptocurrency market trend. Currently, AVAX is trading at around $10, reflecting its durability and recovery potential.
Other altcoins will also be unlocked
AVAX isn’t the only cryptocurrency unlocked this week. Tokens such as LDO, ID, SWEAT and 1INCH will also experience unlocking, albeit on a smaller scale compared to AVAX. The token behind the liquid staking protocol Lido (LDO), Avalanche Blockchain native token (AVAX) and Yield Guild Games DAO (YGG) is scheduled to be unlocked this week, increasing the current token supply in the market. In this article, as Kriptokoin.com, we shared the coin unlocks that will take place throughout the week.
Token unlocking is the gradual release of previously frozen coins to prevent early investors or project team members from liquidating their holdings in large numbers. As a reflection of AVAX’s commitment to growth and innovation, the unlock event on August 26 is expected to resonate in the cryptocurrency community. The unlocked tokens will serve as a resource to power the continued expansion of the Avalanche ecosystem. Market participants will be watching closely the impact this has on the wider landscape.
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