AVAX set for $196 million supply shock amid heavy crypto unlocks next week
|- AVAX will add $196 million to its circulating supply, the largest among next week's crypto token unlocks.
- AVAX holders have experienced nearly a 50% loss year-to-date following consecutive price dips.
- Token Unlocks data for next week reveals that several tokens will add $200 million to their circulating supply.
- ROSE and PIXEL will add $8 million and $7 million to their circulating supply, respectively.
Avalanche (AVAX) is set for a heavy injection into its circulating supply, accounting for 98% of the $200 million token unlocks set for next week. The unlocks could trigger a massive correction for AVAX, which has already been down over 47% since the beginning of the year.
AVAX circulating supply set for a hike following next week's crypto token unlock
Avalanche will add 9.54 million AVAX worth about $196 million to its circulating supply next week as it struggles to recover from the recent market decline, according to data from Token Unlocks.
AVAX underperformed compared to other crypto assets in the current bull cycle. Since the beginning of the year, AVAX holders have sustained nearly a 50% loss, according to data from asset manager Grayscale.
AVAX is up over 2% in the past 24 hours, hovering around the $20 price, but may experience a decline in the coming week following its heavy upcoming token unlock.
The increased supply from token unlocks often stirs negative sentiment from investors, potentially leading to huge sell-offs, especially during heavy unlock events. Furthermore, prices may see a correction as new supply could outweigh demand.
In addition to AVAX, other projects that will witness a hike in their supply next week include ROSE, PIXEL, PENDLE, ID, GAL and 1INCH.
Token Unlocks
ROSE, PIXEL and ID will add tokens worth $8 million, $7 million and $6 million to their circulating supply, respectively. Galxe (GAL) follows behind with $1 million unlocks scheduled for next week.
This brings the total token unlocks for next week to $200 million.
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