According to data from IntoTheBlock, Avalanche Blockchain reached a significant milestone this past weekend. Currently, the network has accumulated a balance of more than six million addresses. Such a trend indicates an increased network activity as the market continues to recover after a minor correction. Amid these developments, the upcoming unlock event raises concerns for the altcoin. According to analysts, a sell-off is possible.
Avalanche (AVAX) network activity increases
IntoTheBlock data reveals that transaction size between $0.00 – $1.00 increased by a staggering 3,156.83%. This is followed by the 1 million – 10 million dollar group, which showed an increase of 233.33% in the same period. While each of the transaction sizes in the range of one thousand dollars – 10 thousand dollars and 100 thousand dollars – 1 million dollars increased by 110%, transaction sizes in the range of 10 dollars – 100 dollars increased by 81.51%.
The transaction size group, $1.00 – $10.00, was the only transaction size group to decline with a negative value of 48.21% last month. Trading volume also increased to over 21 million AVAX this week. Thus, it reached levels that the altcoin project has not seen since May 2022. In US dollars, this figure increased to $460.33 million
The big unlock event has arrived, altcoins are at risk of sell-off!
The ON-chain activity comes amid AVAX’s rise along with the crypto market. As you follow on Kriptokoin.com, the token increased by 110% in the last month alone. At the time of writing, AVAX was changing hands at $20.80, down 1.3% on a daily basis.
However, Avalanche has a token unlock event scheduled to take place on November 24, where approximately $213.35 million worth of AVAX tokens will be unlocked. The 9.54 million AVAX tokens make up 2.68% of the circulating tier 1 token supply. These unlocked tokens will be allocated to Strategic Partners, Founders and Team members. Additionally, the project team will distribute some of it through community airdrops. The largest share was allocated to the team, with 4.5 million AVAX, with a total value of $100.62 million. Higher AVAX reserves on exchanges generally indicate higher selling pressure on the token. Therefore, according to analysts, it is possible that this unlock event will create a sell-off for the altcoin.
$10 million support for AVAX ecosystem
Meanwhile, his total locked value to the Avalanche is significantly below his 2022 high. However, the number seems to be slowly improving this month. Additionally, the ecosystem recently received a major boost from its developer and accelerator, Colony Lab, which announced a $10 million investment aimed at encouraging the continued expansion of the AVAX network. The company purchased more than 500,000 AVAX tokens worth $8 million in recent months. The altcoin project will spend these funds on creating a validator program designed to benefit AVAX holders.
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