AXS dips by 10% ahead of Axie Infinity’s $194 million token unlock event
|- Over 21.5 million AXS tokens are set to be unlocked by October 25.
- These tokens’ distribution has already been allocated and will not be directly pushed into circulation.
- The selling pressure on AXS is already at its peak, with the price hitting $9.05.
As one of the biggest GameFi cryptocurrencies in the world, Axie Infinity’s ecosystem has a significant impact on its price. For the same reason, every major development in the network can either be a bane for AXS’s price or a boon. And by the looks of it, this particular development will not incur a positive response on its price.
Axie Infinity unlock
Axie Infinity is set to go through a token unlock three days from now, on October 25 and right before it, the price has begun dwindling. This is because the addition of 21.5 million AXS tokens could saturate the market and reduce the same.
However, the unlocked tokens will not be hitting the market anytime soon. They will be following a different issuance schedule. This will keep the price from wildly swinging, protecting AXS from a crash at worst.
Of the tokens to be unlocked, 5.73 million AXS are going to be set aside for developers, and another 4.89 million will be dedicated towards future staking rewards. Additionally, advisers and early investors will be receiving 2.5 million and 1.99 million AXS tokens, respectively.
Amounting to about 21.5 million AXS or $194.5 million, this unlock represents almost 8% of the entire AXS supply.
Is AXS in the weeds?
Even trading at $9.02, AXS is currently dipping down. Falling by more than 10% in the last 24 hours, it seems like the development going further will not be good for AXS. This is because as soon as the unlocked tokens reach investors, AXS will be looking at a stream of sales born out of profit booking.
As it is, the cryptocurrency is facing severe selling pressure, as evinced by the Relative Strength Index (RSI). Further selling would lead to a significant price drop. However, since it will be a while before the unlocked tokens are released into circulation, AXS might have a shot at recovering before then.
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