Axie Infinity (AXS) Faces Potential Price Impact as Token Unlock Event Approaches

Despite the current bear market trend, Axie Infinity (AXS) has continued to be one of the best performers in the market. However, given the enormous amount of tokens involved, a planned token unlock event has sparked doubts about the altcoin’s upward momentum.

Unlocking AXS Worth $21.7 Million The most important unlock event planned for this week is the impending Axie Infinity (AXS) token unlock event. AXS unlocks make up the majority of the $27.4 million worth of tokens that will be released in total across the market.

On July 22, a total of 3.43 million tokens are scheduled to unlock over the course of four days, according to Token Unlocks, a website that tracks token unlock events. This converts to based on the current value of AXS tokens, this translates to approximately $21.55 million.

An additional 2.96% of the 270 million tokens in the total supply will enter circulation as a result of this unlock event. The whole unlock, in contrast to the first token unlock event on April 23, is set aside as staking incentives for platform users.

Potential Impact on Axie Infinity Token Price

The AXE Infinity (AXS) token unlock event is anticipated to have a negative impact on the price of the digital asset. Starting on July 22, the price of AXS might likely fall due to the rising quantity in circulation and the waning market demand.

However, it is important to keep in mind that not all of these unlocked tokens will likely join the market at once as they are intended for staking. The gradual rollout of these tokens might lessen selling pressure by giving consumers plenty of time to develop enough demand to offset the added supply.

However, the viability of this scenario primarily hinges on how resilient the overall cryptocurrency market is in the face of the growing gloomy mood. Coins like AXS may gain if market sentiment improves if Bitcoin is able to get beyond the $31,000 barrier once more.

Comparatively speaking to other digital assets, AXS is now keeping rather stable. The AXS price is now $6.40, representing a gain of 1.83% over the last 24 hours, while the 7-day trend shows a gain of 6.86%.