Avalanche's AVAX Token Shows Stability as $130 Million Token Unlock Approaches
This upcoming Sunday marks a significant milestone for the Avalanche blockchain ecosystem, as a substantial number of AVAX tokens-the native cryptocurrency-will be released and distributed among key stakeholders. This distribution event will contribute to a noteworthy 1.2% expansion in the overall supply of AVAX tokens.
On May 27, approximately $130 million worth of tokens, totaling 9.3 million in circulation, were announced to be distributed. Patrick Sutton, the communications chief of Avalanche, stated that these tokens will be allocated to the Avalanche Foundation, strategic partners, Ava Labs, and also include an airdrop.
“Tokens from unlocks aren’t automatically put to use. It just means the Foundation can now use them, but it is at their discretion when and how to use them,” added Sutton.
AVAX is the gas to Avalanche’s smart contracts ecosystem and also used to secure the blockchain via staking. It has remained stable in the past 24 hours, standing at $14.20, CoinDesk data shows.
“Token unlocks freak people out in general, but the upcoming Avalanche unlock has been mapped out for a while now and most sophisticated actors have adjusted for it,” said Lindsey Winder, CEO of token infrastructure firm Hedgey Finance.
Data from crypto analytics firm Token Insights shows 358.55 million AVAX remains locked, though Sutton says the figure of remaining locked tokens is 96.06 million, about a quarter of Token Insights’ figure.
Source Coindesk
