cryptocoin.com As we reported, a significant amount of AVAX, the native coin of the popular altcoin project Avalanche network, will be unlocked next month. According to K33 Research, formerly known as Arcane Research, this unlock event could most likely have a negative impact on the value of the cryptocurrency! So what do the experts think? Here are the details…
Popular altcoin Avalanche (AVAX) will unlock 9.5 million AVAX coins in one month!
According to data from Token Unlocks, 9,541,800 AVAX coins worth over $168 million at current valuation will be available in less than a month. The unlock event will take place on May 28 and will release approximately 3 percent of the 327 million AVAX coins currently in circulation. According to a report from K33 Research, unlocking these coins is expected to negatively impact the price of AVAX. In the same report, the research firm announced its decision to “exclude” AVAX from the K33-Vinter index, which ranks the most promising coins among the top 30 crypto assets.
According to K33’s Vice President, Avalanche’s decision to remove its native coin from this index was based on a reassessment of the coin’s expected inflationary pressure and concentration of ownership. The company noted that AVAX had a lower Inflation and Ownership Concentration score; therefore, it was removed from the Vinter Quality Index.
Data from Token Unlocks reveals that more than half of the cryptocurrency supply is still locked. However, these locked tokens will be gradually released over the next seven years, with the final unlock scheduled for October 20, 2030.
Despite the increase in network revenues and activities, AVAX price remained stable!
Activity on the Avalanche Network has seen a huge spike in recent weeks. According to data from Token Terminal, daily activity on the blockchain has increased by an enormous 91.5 percent in the last month. Moreover, there has been a staggering 386 percent increase in the platform’s revenue over this time frame. However, it can be argued that this increase in network activity and revenue did not particularly affect AVAX’s market performance over the past month. According to CoinGecko data, AVAX has seen a slight price increase of 1.7 percent in the last 30 days.
According to experts, one of the reasons for this disappointing market run could be the upcoming coin unlocking of Avalanche. In a tweet by K33 Research, it is stated that the amount of free-floating AVAX will increase rapidly as the coin is unlocked to early investors, contributors and team members.
Also, consistent and significant unlocking of the popular altcoin AVAX over the next few years is expected to increase the selling pressure of the coin compared to other coins. According to experts, this is explained by the fact that most investors want to liquidate their holdings by selling some of their locks.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your own research and due diligence before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.