This Saturday marks a major milestone for the Avalanche blockchain, as roughly 9.54 million AVAX tokens valued at around $99 million are set to unlock from the Avalanche Foundation’s wallet. This large token release represents just the first portion of over 84.2 million AVAX that will enter circulation over the next year, increasing the total token supply by 25%.
The Avalanche Foundation’s wallet contains a significant portion of AVAX holdings, with the 9.54 million AVAX unlock this weekend being worth nearly $100 million at current market prices. Additional Foundation tokens will continue unlocking in the coming months.
Alongside the Foundation’s unlocking supply, major allocations of AVAX are also scheduled to become liquid. Strategic partners, including potential partners like Amazon Web Services, will gain access to 2.25 million AVAX worth over $23 million. Avalanche’s internal teams will see 4.5 million tokens worth $46 million become unlocked, providing further resources for development. And 1.1 million AVAX valued at over $11 million is set aside for community airdrops, providing tokens directly to users.
With so much AVAX entering circulation in waves, the market will be keeping an extremely close eye on the impacts of the token’s valuation and circulating supply. On Saturday, the supply will immediately increase by 2.77%, which could put downward pressure on the $10.39 price of AVAX. However, the unfolding long-term impacts remain to be seen.
Traders and investors will be monitoring closely when these large blocks of tokens enter the market, as the Foundation, partners, teams, and community members begin accessing their allocations. The months ahead will test AVAX’s economics, as the schedule of major unlocks continues releasing new token supply.
