The price of Avalanche (AVAX) is currently under significant pressure as the market braces for a major token unlock event that could inject millions of dollars’ worth of new tokens into circulation. After rallying to nearly $36 in September, AVAX has since fallen sharply, slipping below the psychological $20 level — its lowest point since October 11.
The decline comes as investors grow cautious ahead of October 24, when 1.67 million AVAX tokens, currently valued at around $35 million, are scheduled to be unlocked. This event is part of Avalanche’s ongoing token release schedule, which has already seen approximately 60% of the total supply unlocked, with the remaining tokens set to be gradually released through at least 2030.
Historically, token unlocks tend to exert downward pressure on prices. When large numbers of previously locked tokens become available for trading, the circulating supply increases — often leading to selling pressure from early investors, project contributors, or institutions looking to realize profits.
Beyond the tokenomics, Avalanche’s ecosystem growth metrics have also shown signs of slowing. According to recent data from Nansen, the number of transactions on the Avalanche network dropped by 18% over the past seven days, totaling about 11.1 million. This slowdown in network activity suggests that user engagement and on-chain demand have weakened, which can further dampen market sentiment.
Despite this, Avalanche remains one of the more technologically advanced Layer-1 blockchains, offering fast transaction speeds and compatibility with Ethereum’s tooling. The network has been focusing on scaling its subnet architecture, which allows developers to create customized blockchains within the Avalanche ecosystem — a strategy aimed at fostering long-term growth.
However, in the short term, market sentiment remains cautious. Traders and investors are watching the upcoming unlock closely, as it could determine whether AVAX stabilizes near the $20 zone or faces another leg down toward lower support levels.
If demand fails to absorb the newly released tokens, AVAX may experience additional selling pressure. Conversely, if the unlock passes without significant liquidations, it could restore confidence and set the stage for a potential post-unlock rebound.
In conclusion, the next few weeks will be crucial for Avalanche. The combination of a slowing ecosystem, declining price momentum, and an impending token unlock event has created a tense environment for AVAX holders. Whether the market can absorb the influx of supply — or whether it triggers a deeper correction — will be a key test of the network’s current strength and investor confidence.
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