Avalanche’s AVAX Token Faces Bearish Pressure amid Token Unlock
avalanche’s AVAX Token Faces Bearish Pressure Amid Token Unlock
Avalanche’s AVAX token has entered a bearish phase,plunging 45% from its September peak. The token recently hit $20, a significant drop from its high 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 frequently enough leads to a bearish trend as it increases the token supply. avalanche has unlocked about 60% of its tokens so far, wiht the process continuing until 2030.
The network’s growth has also slowed. According to Nansen, transactions fell by 18% in the last week, totaling 11.1 million.this drop has affected the network’s fee income, which decreased by 61% to $345,000. Though, monthly fees have risen by 120% to $2.14 million.
Avalanche burns all its fees, and the cumulative burn rate has crossed 4.87 million. Despite the challenges, Avalanche has become a key player in the stablecoin industry, with a circulating supply of $1.7 billion.
The platform is also leading in real-world asset (RWA) tokenization,hosting over $740 million in tokenized assets.Financial institutions like SkyBridge Capital 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, marking a significant milestone. However, the AVAX price chart shows continued pressure.It has fallen below the 50-day and 200-day Weighted Moving Averages.
Further declines could lead to a death cross pattern, indicating more downside. The coin may drop to its October low of $17. A break below this level could push the price to $15.
