Introduction
Axie Infinity (AXS) emerged as a prominent “play-to-earn” blockchain game in 2021, attracting a significant player base and investors alike due to its financial incentives. However, the game’s native token (AXS) faces a substantial token unlock event on October 20th, which may significantly impact its price.
Token Unlock Details
On October 20th, approximately 15.13 million AXS tokens (valued at $64.44 million) will be released into circulation. This unlock represents 11.5% of AXS’s current circulating supply (141.31 million tokens) and exceeds the token’s daily trading volume of $40.12 million. The distribution of unlocked tokens is as follows:
- Team: 6.08 million AXS ($25.91 million)
- Advisors: 554,750 AXS ($2.36 million)
- Play to Earn: 3.38 million AXS ($14.38 million)
- Ecosystem Fund: 1.69 million AXS ($7.19 million)
- Staking Rewards: 3.43 million AXS ($14.59 million)
Market Impact
The sheer volume of unlocked tokens could exert downward pressure on AXS’s price, particularly in light of the current market uncertainty. If a significant portion of unlocked tokens is sold, the price could potentially plummet.
As of press time, the order book for the highest volume trading pair (AXS/USDT on Binance) has only 163,266 AXS buying orders between $4.2 and $2.5 per token. If just 1% of the unlocked tokens were sold in a single order on Binance, it would deplete the order book and drive the price down to $2.5.
Conclusion
While the full extent of the token unlock’s impact on AXS’s price remains unknown, it is a significant event that could potentially lead to a sell-off and further price declines. However, the long-term outlook for AXS will depend on ongoing developments within the Axie Infinity ecosystem, as well as broader market sentiment and economic conditions.
- Author
- MigBase.com
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