- More AVAX, representing over 2% of the current supply, will be unlocked on 26 August.
- AVAX has continued to decline alongside its market cap.
Avalanche [AVAX] has faced a challenging period recently, with its price experiencing a noteworthy decrease. Despite this decline, the planned unlock event is still on track and is set to occur later this week. This event will result in the release of additional AVAX into circulation.
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The Avalanche unlocks
Based on information collected from Token Unlocks, Avalanche is scheduled to undergo an unlock event later this week. The data indicated that a total of 9.54 million AVAX, equivalent to a value exceeding $100 million, would be unlocked on 26 August.
The details from Token Unlocks revealed that these unlocked AVAX tokens would be allocated among the Foundation, partners, and the team, with a portion also designated for airdrops.
About 53% of the maximum supply has been unlocked, and the forthcoming unlock event accounts for 2.77% of the circulating supply. However, it was worth noting that there has been a recent decrease in the market capitalization of the circulating supply.
Avalanche market cap declines as unlock approaches
As of this writing, Avalanche’s circulating supply was more than 344 million tokens, with a market capitalization surpassing $3.6 billion, as reported by CoinMarketCap.
Nevertheless, the visual representation illustrated a nearly $1 billion decline in market capitalization for AVAX during August alone. As of this writing, the token had experienced an almost 2% decrease in value.
This decline could be attributed to the continuous drop in price that Avalanche has encountered over the preceding weeks.
AVAX maintains a downward trend
Examining the daily timeframe chart of Avalanche revealed that the decline in its price was initiated in July, although the most substantial drop occurred during August. As of this writing, the token was experiencing an almost 3% decrease, with a trading value hovering around $10.5.
This downward price trend was evident in the Relative Strength Index (RSI) and the Moving Average (MA). The RSI was recorded below 30. This indicates an oversold condition.
Realistic or not, here’s AVAX market cap in BTC’s terms
Additionally, the price was below its short-term and long-term Moving Averages, represented by the yellow and blue lines.
While the impending unlock event might raise concerns given Avalanche’s current trajectory, its impact should not be significantly pronounced. However, if any effects are to manifest, they are unlikely to be immediate.