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- In December, approximately 3 million AVAX tokens were in circulation.
- AVAX has recorded gains of 72% since the beginning of the month.
Token unlocking has become a source of considerable interest in the cryptocurrency industry. Experts and traders actively monitor these events due to the fact that they exert inflationary pressure and act as a bearish catalyst for the asset.
Is AVAX facing inflationary pressures?
As of this writing, approximately 3 million Avalanche (AVAX) tokens were in circulation in December, according to research from AMBCrypto’s Token Unlock Dashboard. at the current market price $38.52This equates to approximately $115 million.
Almost all tokens were distributed as part of staking rewards.
Source: Token Unlock
However, AMBCrypto’s examination of AVAX’s price trends over the past 24 hours found no evidence of downward pressure.
Conversely, the ninth-largest cryptocurrency on the market was trading 7% higher than it was at the same time a day earlier, according to CoinMarketCap.
The insignificant impact of token inflows may be due to their relatively small volume. The released tokens represent only 0.82% of AVAX’s total circulating supply, which is too small to have any real impact on market dynamics.
As you can see in the graph below, even the final cliff unlock of 9.54 million on November 24 failed to topple AVAX.
The next cliff unlock is scheduled for February 22, 2024, which will again see 9.54 million tokens unfrozen. It will be interesting to observe whether AVAX shows similar resilience or a downward trend.
For the uninitiated, cliff unlocks refer to tokens that are unlocked on predefined dates and schedules.
Source: CoinMarketCap
AVAX moved forward safely.
AVAX was one of the best performing companies in December, returning nearly 72% on a month-to-date (MTD) basis. The asset maintained momentum even amid sharp corrections in the broader market.
How much is 1,10,100 AVAX worth today?
The newfound vitality has boosted AVAX’s prospects in the derivatives market. Using data from Coinglass, AMBCrypto found that AVAX futures open interest (OI) soared to an all-time high (ATH) of $370 million last week.
Source: Coinglass
Moreover, as the price moved northwards, bullish bets on the asset increased. Likewise, the number of traders holding long positions exceeds the number of traders looking for price drops.
Source: Coinglass