A significant amount of AVAX, the native coin of the popular altcoin project Avalanche network, will be unlocked next month, as quoted by Kriptokoin.com. According to K33 Research, formerly known as Arcane Research, this unlock event could most likely have a negative impact on the value of the cryptocurrency! So what do the experts think? Here are the details…
Popular altcoin Avalanche (AVAX) will unlock 9.5 million AVAX coins in one month!
According to data from Token Unlocks, 9,541,800 AVAX coins worth over $168 million at current valuation will be available in less than a month. The unlock event will take place on May 28 and will release approximately 3 percent of the 327 million AVAX coins currently in circulation. According to a report from K33 Research, unlocking these coins is expected to negatively impact the price of AVAX. In the same report, the research firm announced its decision to “exclude” AVAX from the K33-Vinter index, which ranks the most promising coins among the top 30 crypto assets.
According to K33’s Vice President, Avalanche’s decision to remove its native coin from this index was based on a reassessment of the coin’s expected inflationary pressure and concentration of ownership. The company noted that AVAX had a lower Inflation and Ownership Concentration score; therefore, it was removed from the Vinter Quality Index.
Data from Token Unlocks reveals that more than half of the cryptocurrency supply is still locked. However, these locked tokens will be gradually released over the next seven years, with the final unlock scheduled for October 20, 2030.
Despite the increase in network revenues and activities, AVAX price remained stable!
Activity on the Avalanche Network has seen a huge spike in recent weeks. According to data from Token Terminal, daily activity on the blockchain has increased by an enormous 91.5 percent in the last month. Moreover, there has been a staggering 386 percent increase in the platform’s revenue over this time frame. However, it can be argued that this increase in network activity and revenue did not particularly affect AVAX’s market performance over the past month. According to CoinGecko data, AVAX has seen a slight price increase of 1.7 percent in the last 30 days.
According to experts, one of the reasons for this disappointing market run could be the upcoming coin unlocking of Avalanche. In a tweet by K33 Research, it is stated that the amount of free-floating AVAX will increase rapidly as the coin is unlocked to early investors, contributors and team members.
Also, consistent and significant unlocking of the popular altcoin AVAX over the next few years is expected to increase the selling pressure of the coin compared to other coins. According to experts, this is explained by the fact that most investors want to liquidate their holdings by selling some of their locks.
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