Despite the prevailing bear market trend, Axie Infinity (AXS) has managed to maintain its position as one of the best performing altcoins on the market. However, the imminent token unlock event has the potential to disrupt the bullish trend, given the large number of tokens involved. The upcoming Axie Infinity (AXS) token unlock event, scheduled for July 22, is expected to be the most impactful token unlock event of the week, accounting for the majority of the $27.4 million worth of tokens to be unlocked.
Token Unlock Event and Its Implications:
According to Token Unlocks, a leading token tracking site, 3.43 million AXS tokens will be unlocked in just four days. At the current AXS token price, which is in effect at the time of writing, this unlocked token amount is estimated to be worth $21.55 million. This represents a significant increase in circulating supply, which could exert bearish pressure on AXS price, especially in a market that is experiencing reduced demand.
Staggering Prizes and Staggered Introductions:
Unlike the previous token unlock event which was held on April 23, this unlock is different. All future token unlocks will be allocated as staking rewards for users of the Axie Infinity platform. While this will contribute to an increase in the circulating supply, it should be noted that these tokens will most likely not hit the market all at once. This staggered introduction to the market can help reduce selling pressure and give buyers enough time to generate enough demand to offset the influx of new supply.
Market Conditions and Recovery Potential:
The success of AXS and other cryptocurrencies is highly dependent on the overall market sentiment. If the broader crypto market can withstand the increasing bearish pressure and witness a recovery above $31,000 for Bitcoin, coins like AXS should benefit from the regained positive sentiment. However, this still depends on the market’s ability to bounce back.
Current Status of AXS:
Currently, AXS continues to be stable compared to other altcoins. At a current price of $6.24, this digital asset has lost a slight 0.32% over the last 24 hours. However, it boasts a significant gain of 6.86% on the 7-day chart, demonstrating its resilience amid market fluctuations.
Axie Infinity (AXS) is poised for a critical test as the upcoming token unlock event draws near. While the opening of a large number of tokens can depress prices, the staggered introduction of tokens and the possibility of a market recovery offer potential counterbalances. Market participants are looking forward to July 22nd to witness the results and gauge AXS’ performance in light of this significant development.