🚨Avalanche's AVAX underperformed before $365 million in tokens unlocked📈
⏩The Avalanche AVAX network's native Crypto Assets have not performed as much as Long digital assets, as the Token will have a $365 million unlock this week, which will increase the Token's supply.
⏩Over the past week, AVAX has fallen by more than 3%, while most Long Crypto Assets (148 of the 173 constituents of the large-cap CoinDesk Market Index (CMI)) have risen. The CoinDesk20 Index (CD20), which tracks the performance of the largest and most liquidity crypto assets, rose 6% over the same period. AT PRESS TIME, AVAX WAS TRADING AT $38, ABOUT 23% BELOW ITS DECEMBER HIGH.
According to Token.Unlocks, the reason for the AVAX's underperformance is that about 9.5 million previously locked AVAX Token worth $365 million will be released on Thursday, which has increased the asset's circulating supply by about 2.6%.
⏩About 4.5 million Tokens will be transferred to team members, 2.25 million to strategic partners, 1.67 million to the Ecosystem Development Foundation, and 1.13 million earmarked for Airdrops.
On-chain data shows that about 58% of all Tokens in AVAX have been unlocked.
Token unlocking means an increase in the asset supply, freeing up Tokens that were previously locked in the vesting period, including Tokens from early investors.
A report last year by Crypto Assets analyst firm The Tie found that mass unlocking events typically cause prices to fall within two weeks as the increase in supply outstrips investor demand for the asset.🔥
⏩ Keep on eyes 👀
$AVAX $BTC
