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- Several crypto projects will release a combined $900 million worth of vested tokens this month, with Avalanche leading the way at 9.5 million AVAX tokens worth over $300 million.
- Others set to release tokens include Aptos, SUI and Optimism, with analysts concerned that these releases could tank the prices of these projects amid dipping altcoin trading volumes.
February is a big month for the crypto industry, and one event that will define the sector is the release of over $900 million worth of vested tokens by some leading altcoin projects.
Avalanche leads the list; as Token Unlocks reveals, in just over 16 days, the project will release 9.54 million AVAX tokens, valued at $344 million. This is a significant amount of tokens for a project that has recorded an average of $400 million in trading volume in the past two days.
AVAX trades at $35.60 at press time, barely moving in the past week, where it set a high of $37 and a low of $32. At $13 billion, it’s the ninth-largest crypto, and with its relative strength index hitting highs of 60+ in the past week, it has seen high interest from investors. However, the RSI has dipped in the past few days, leaving a high upside for the token.
A portion of the released tokens went to the Avalanche Foundation to fund the development of the protocol, issue grants to projects building on the network and other efforts to boost adoption. The rest was divided between staking rewards, strategic partners, airdrops, etc.
Here’s What Happened the Last Time AVAX Released 9.5m Tokens
The last time Avalanche released a similar batch of tokens was in late November last year. The release saw 9.5 million AVAX tokens added to the circulating supply, which at the time was worth just over $200 million as AVAX was trading at $20.
The November release came at a time when AVAX was on an uptrend. In the first three weeks of the month, its price had shot from $11 to $22.9. The extra tokens flooding the market did little to change the momentum, and over the next month, AVAX shot its way to a new 18-month high at $48.
On February 25 when the 9.5 million tokens hit the market, the prevailing market momentum will play a critical role. If, at the time, AVAX will be trading above the psychological resistance level of $40, it’s more likely to breeze past the added liquidity, absorb it, and continue with its uptrend. However, an extra ten million tokens added to a faltering market could send it below its two-month support level of $27.
The other projects scheduled to release tokens this month include The Sandbox, SUI, Aptos and Optimism. In just five days, Aptos will release 24.84 million APT tokens, worth $228 million, which is only second to the AVAX release. The layer-1 blockchain, which has close links to Facebook, is trading at $8.96 at press time, shedding 14% in the past month.