Avalanche Token Faces Bearish Pressure Amid Token Unlock
Avalanche (AVAX) has entered a bearish phase,with its price plummeting by 45% since September. The token recently hit a low of $20, a notable drop from its peak of $36. This decline is expected to continue due to an upcoming token unlock.
On October 24, Avalanche will unlock 1.67 million tokens,valued at nearly $35 million. This event ofen leads to a bearish trend as it increases the circulating supply. So far, Avalanche has unlocked about 60% of its tokens, with the process extending until 2030.
The networkS growth has also slowed. According to Nansen, transactions have decreased by 18% in the last week, totaling 11.1 million. This drop has affected the network’s fee revenue, which fell by 61% to $345,000. Though, monthly fees have surged by 120% to $2.14 million.
Avalanche burns all its fees, and the cumulative burn rate has surpassed 4.87 million tokens. Despite the challenges, Avalanche has made strides in the stablecoin sector, with a circulating supply of $1.7 billion. It’s also a leader in real-world asset (RWA) tokenization,hosting over $740 million in tokenized assets.
Financial institutions like SkyBridge Capital and Grove Finance have contributed to this growth by tokenizing over $550 million in hedge funds and credit products. Wyoming recently launched FRNT, the first U.S.state-issued stablecoin on Avalanche.
Technically, AVAX has fallen below key moving averages.A break below $17 could signal further declines,perhaps to $15. Investors should monitor these levels closely.
