AVAX Coin Price Soars After Token Unlock Event

Bittime - Price Avalanche (AVAX) continues to rally for the sixth day in a row after a significant token unlock. The Avalanche token hit a high of $23.25 (Rp. 362,400) on August 21, its highest level since August 3 and 32% above its August low.

Yield Staking Avalanche Turun

This increase came a day after the network unlocked 9.5 million AVAX tokens worth more than $202 million (Rp. 3.15 billion). The next unlock will occur on November 18 this year.

Avalanche holders should expect more unlocks in the next few years, as only 64% of the total tokens have been unlocked. More than 255 million tokens will be unlocked until August 2029.

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Token unlocking is generally negative for existing holders because it increases the number of coins available. Additionally, they impact staking rewards as some of these tokens flow into the staking pool.

Data from StakingRewards shows that AVAX staking yields have been trending downward in recent weeks and are near their lowest levels in months. It fell to 7.93% on August 21, down from 7.97% on July 21.

Data further showed that staking inflows increased after the token unlock on August 20 after falling for six consecutive days, a sign that some investors were exiting their respective shares before the token unlock.

Avalanche tokens also rose after Santiment data showed that intraday volume grew to over 309 million, the highest point since August 7.

Read also: Aptos Transaction Volume Surge Triggered by UPTOS Launch

AVAX Price Forms Death Cross and Head and Shoulders Pattern

The Avalanche have been under quite a lot of pressure this year. The token has dropped more than 64% from its high in March. It formed death crosses and head-and-shoulders patterns in June, often leading to further declines.

Additionally, Avalanche continues to lose market share in the Decentralized Finance market. Data from DefiLlama shows that the total value locked has shifted to $882 million, making it the ninth largest chain in the industry.

Avalanche has been overtaken by newer chains like Base and Arbitrum, which have assets of $1.49 billion and $2.68 billion, respectively.

Other networks have also surpassed decentralized exchange volumes. Its weekly DEX volume was $421 million, while Arbitrum had $3.7 billion and Base had $3.18 billion.

A possible reason for this is that, unlike Solana and Base, Avalanche meme coins like Coq Inu (COQ), Kimbo, and Gecko Inu have not become very popular. In contrast, Solana tokens such as Dogwifhat and Bonk have been gaining market share.

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