In a month that saw Axie Infinity (AXS) experience an impressive 33% price surge, the crypto community is now closely eyeing an upcoming token unlock event. The on-chain market depth chart raises concerns as sell-orders accumulate, suggesting a potential price correction in the offing. At the same time, the steady rise in AXS Mean Coin Age indicates a positive sentiment among investors, who are keen on staking their tokens for alluring rewards.
Token Unlocks, a Tokenomic insights platform shared AXS surge in a Twitter thread:
Scheduled for June 22, the token unlock would unleash a substantial 3.63 million AXS tokens, valued at approximately $22 million based on the current price. As the unlocking date nears, traders are cautiously approaching the situation, wary of potential price volatility.
In contrast to a previous token unlock event in April 2023, which led to a price correction, this unlock is designed to incentivize holders who have staked their tokens. The response from investors has been enthusiastic, with many choosing to hold onto their AXS tokens and actively participating in staking, contributing to the impressive 33% price rally. The prospect of staking rewards has become increasingly appealing, attracting more investors looking to capitalize on the upcoming unlock.
A crucial metric that sheds light on this trend is the Axie Infinity Mean Coin Age, a measure of the average duration investors hold their tokens. Throughout July, the Mean Coin Age has steadily risen, indicating a widespread accumulation of tokens among investors. This signals that many are opting to hold onto their AXS tokens for extended periods, likely to maximize rewards once the unlocking event occurs.
While the market generally remains optimistic about the potential rewards from staking, traders are being vigilant by closely monitoring the on-chain market depth chart. The mounting sell-orders before the token unlock event suggest some participants are bracing themselves for a possible price correction.
As the token unlock date looms, uncertainty prevails in the market. On the one hand, the dedication to rewarding stakers has instilled confidence and enthusiasm among investors. Conversely, the influx of newly unlocked tokens could apply downward pressure on the price.
