Despite the prevailing bear market trend, Axie Infinity (AXS) has managed to retain its position as one of the top-performing altcoins in the market. However, an imminent token unlock event could potentially disrupt the bullish trend, given the significant 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, constituting the majority of the $27.4 million worth of tokens set to be unlocked.
Token Unlock Event and Its Implications:
According to Token Unlocks, a reputable token tracking website, a staggering 3.43 million AXS tokens are set to be unlocked in just four days. At the current AXS token price, which stands at the time of this writing, these unlocked tokens amount to an estimated value of $21.55 million. This represents a significant increase in the circulating supply, which could exert bearish pressure on AXS’s price, particularly in a market experiencing declining demand.
Staking Rewards and Staggered Introduction:
Unlike the previous token unlock event held on April 23, this unlock is different. The entirety of the upcoming token unlock 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 is worth noting that these tokens will likely not hit the market all at once. This staggered introduction into the market may help mitigate selling pressure and provide buyers with enough time to generate sufficient demand to counterbalance the influx of new supply.
Market Conditions and Potential Recovery:
The success of AXS and other cryptocurrencies depends heavily on the overall market sentiment. If the broader crypto market can resist the mounting bear pressure and witness a recovery above $31,000 for Bitcoin, coins like AXS stand to benefit from the regained positive sentiment. However, this remains contingent on the market’s ability to bounce back.
Current Status of AXS:
At present, AXS continues to hold steady in comparison to other altcoins. With a current price of $6.24, the digital asset has experienced a slight 0.32% decline over the past 24 hours. However, it boasts a significant 6.86% gain on the 7-day chart, showcasing its resilience amidst market fluctuations.
Axie Infinity (AXS) is poised for a critical test as the upcoming token unlock event approaches. While the unlocking of a substantial number of tokens may exert downward pressure on the price, the staggered introduction of tokens and the possibility of a market recovery offer potential counterbalances. Market participants eagerly await July 22 to witness the outcome and gauge AXS’s performance in light of these significant developments.