Upcoming Event Bearish for Axie Infinity (AXS)

Upcoming Event Bearish for Axie Infinity (AXS)

The Impact of the Axie Infinity Token Unlock on the Blockchain Industry

Introduction

The blockchain industry continues to evolve and witness significant developments, with various cryptocurrencies gaining traction in the market. One such cryptocurrency that has caught the attention of investors and enthusiasts is Axie Infinity (AXS). Despite the ongoing bear market trend, AXS has managed to maintain its position as one of the top performers. However, an upcoming token unlock event has raised concerns about the altcoin’s bullish trend.

The Axie Infinity Token Unlock Event

The upcoming Axie Infinity (AXS) token unlock event is expected to be the most significant unlock happening in the blockchain space this week. Out of the total $27.4 million worth of tokens set to be unlocked, AXS unlocks constitute the majority. According to Token Unlocks, a token tracking website, a total of 3.43 million tokens are scheduled to be unlocked in four days on July 22. At the current price of AXS tokens, this amounts to $21.55 million.

This token unlock event will introduce an additional 2.96% of the total 270 million supply into circulation. However, unlike the previous token unlock held on April 23, where the tokens were released into the market, this unlock is solely dedicated to staking rewards for users of the Axie Infinity platform.

Potential Impact on the Axie Infinity Token Price

The Axie Infinity (AXS) token unlock event is likely to exert bearish pressure on the price of the digital asset. The increased circulating supply, combined with declining demand in the market, could potentially lead to a decline in AXS’s price from July 22 onwards.

However, it is important to note that these unlocked tokens will not hit the market all at once. The staggered introduction of the tokens into circulation could mitigate selling pressure, allowing buyers sufficient time to generate enough demand to offset the new supply.

Market Sentiment and Bitcoin’s Influence

The impact of the Axie Infinity token unlock event on the token price is contingent upon the overall market sentiment and Bitcoin’s performance. If Bitcoin manages to recover above the $31,000 mark, it could positively influence market sentiment and benefit cryptocurrencies like AXS as well.

Current Status of AXS

Despite the upcoming token unlock event, AXS is still holding steady compared to other cryptocurrencies in the market. As of now, AXS is trading at a price of $6.24, experiencing a slight decline of 0.32% in the last 24 hours. However, it has recorded gains of 6.86% on the 7-day chart.

In conclusion, the Axie Infinity token unlock event is expected to impact the price of AXS in the short term. While the increased circulating supply may exert bearish pressure, the staggered introduction of tokens and the recovery of market sentiment, particularly driven by Bitcoin, may help mitigate the effects. As the blockchain industry continues to evolve, it is crucial to closely monitor token unlock events and their potential impact on the market.


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