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AVAX On-Chain Metrics Surge Amidst Upcoming Token Unlock Event: Data

AVAX On-Chain Metrics Surge Amidst Upcoming Token Unlock Event: Data

Avalanche layer 1 blockchain hit a significant milestone last weekend, according to the data compiled by IntoTheBlock.

Currently, the network has amassed a balance across more than six million addresses. Such a trend suggested an increased network activity as the market continued to recover from a minor correction. Further data suggest that the number of transactions on the Avalanche blockchain hit a new all-time high of 6.35 million on November 22nd.

AVAX Network Activity Increases, But Sell-Off Concerns Loom

ITB’s data revealed that transaction size within the range of $0.00 – $1.00 surged by an astonishing 3156.83%. This was followed by the $1 million – $10 million cohort that saw a 233.33% increase during the same period. Transaction size within the ranges of $1k – $10k and $100k – $1 million was up by 110% each, while that of $10 – $100 surged by 81.51%.

The transaction size group of $1.00 – $10.00 is the only one to have registered a decline over the past month with a negative value of 48.21%. The transaction volume also spiked to more than 21 million AVAX this week, reaching levels not seen since May 2022. In terms of USD, the figure surged to $460.33 million

The on-chain activity comes amidst AVAX’s rally alongside the crypto market. The token was up by 110% over the past month alone and currently exchanged hands at $20.82.

However, Avalanche has an upcoming token unlock event scheduled for November 24, during which approximately $213.35 million worth of AVAX tokens are poised to be unlocked, with 9.54 million AVAX tokens constituting 2.68% of the circulating supply of layer 1 tokens.

These unlocked tokens will be allocated to Strategic Partners, Founders, and Team members and distributed through community airdrops. The largest share, totaling 4.5 million AVAX valued at $100.62 million, is earmarked for the team.

Higher AVAX reserves on exchanges generally point to a higher selling pressure on the token, which could drive its price lower.

M Boost for AVAX Ecosystem

The total value locked on Avalanche is significantly below the 2022 high, but the figure appears to be slowly recovering this month.

Furthermore, the ecosystem got a major boost recently from its developer and accelerator, Colony Lab, which announced a $10 million investment aimed at fostering the sustained expansion of the AVAX network.

The company has acquired over 500,000 AVAX tokens, valued at $8 million in recent months. These funds will be directed towards establishing a validators program designed to benefit AVAX holders.

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