Avalanche price crashes as almost 10 million AVAX tokens flood market in cliff unlock

Avalanche price crashes as almost 10 million AVAX tokens flood market in cliff unlock

The Avalanche network released 9.54 million AVAX tokens worth $356.39 million to the market on Thursday. These tokens represent approximately 2.6% of the total supply

Avalanche (AVAX) price has experienced a difficult second half of February, characterized by lower highs and lower lows.

The Avalanche network released 9.54 million AVAX tokens worth $356.39 million to the market on Thursday. These tokens represent approximately 2.6% of the total supply. This event was a cliff unlock, where the tokens had been scheduled to unlock at intervals more frequent than daily, rather than the traditional weekly, monthly or annual periods.

Token unlocks are considered a bearish catalyst due to the increased supply. In the Avalanche network's previous unlock in November 2023, investors who anticipated a price drop were disappointed. Although they expected a dip, the price surged 5% within the first week, followed by a 44% increase within two weeks.

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