• Axie Infinity’s AXS cryptocurrency is facing losses ahead of Sunday’s scheduled unlocking of millions of dollars worth of the blockchain-based, play-to-earn project’s tokens.
• Unlocks are widely seen as bearish catalysts, however the current price drop may be attributed to a wider market swoon.
• The remaining 77.76 million AXS tokens will be unlocked by the end of 2025.
Axs Nurses Losses as $156M Token Unlock Looms
Axie Infinity’s AXS cryptocurrency is nursing losses ahead of Sunday’s planned unlocking of millions of dollars worth of the blockchain-based, play-to-earn project’s tokens. At press time, the AXS price was $8.22, down 12% for the week, CoinDesk data shows. The cryptocurrency had a total valuation of $941.7 million, the third largest in the play-to-earn and gaming sector behind market leader Decentraland’s MANA and The Sandbox’s SAND.
Token Unlock Overview
Data from TokenUnlocks show on April 23 Axie will unlock 18.89 million tokens, worth $155.27 million at the current rate, amounting to 7% of the cryptocurrency’s total supply of 270 million. Axie kicked off a staggered 65 month token unlock in 2020 and so far 176.55 million tokens have been made available with the remaining 77.76 million being unlocked by 2025’s end.
Bearish Catalyst Effects
Unlocks are widely considered bearish catalysts because holders benefiting from these unlocks now have new ability to sell their coins, potentially adding to supply in markets and driving prices down as a result if done all at once or too quickly after each other in succession..
Market Movement Impact
However unlocks don’t always lead to lower prices and in past instances AXS has rallied in lead up to unlocking event plus wider crypto market has faced selling pressure this week with top cryptos Bitcoin (BTC) & Ether (ETH) losing 8% & 10%, respectively .
It is uncertain whether or not this upcoming token unlock will cause further bearishness on AXS prices but it is important to note that there are other factors impacting its value such as broader crypto market sentiment & previous token unlocks which didn’t necessarily lead to drops in price values either