AXS Rises 40% Before $64 Million Token Unlock
Key Points:
- The AXS cryptocurrency from play-to-earn juggernaut Axie Infinity is surging despite the upcoming release of tokens with a value of millions of dollars.
- The Axie Infinity game’s governance token is called Axie Infinity Shards.
- AXS is one of the several cryptocurrencies gaining ground ahead of the token unlock.
The AXS cryptocurrency from play-to-earn juggernaut Axie Infinity is surging despite the upcoming release of tokens with a value of millions of dollars.
AXS has increased by almost 40% in the last day, hitting a four-month high of $13.94.
According to Coinalyze, the dollar value locked in the number of open contracts in perpetual futures linked to AXS has increased by 156% to $104 million during the last day. A price rebound and an increase in open interest point to fresh investment on the positive side.
Players can acquire, breed, grow, battle, and trade non-fungible token-based creatures known as “axies” in the blockchain-based trading and combat game Axie Infinity (NFTs).
The Axie Infinity game’s governance token is called Axie Infinity Shards
According to data source TokenUnlocks, 4.8 million AXS tokens, or 1.8% of the cryptocurrency’s 270 million total supply, will become available later on Monday. This may make the most recent bullish market movement seem puzzling.
Unlocks are seen as bearish catalysts that create liquidity and allow investors to secure gains. Tokens are locked up to stop major bag holders from selling their coins all at once and triggering price drops. These big bag holders are typically early investors or even project team members.
According to Flex Hartmann, managing partner at crypto investment firm Hartmann Capital, the confounding rally results from the hope that the Axie team will announce a positive catalyst to counteract the bearish impact of the token unlock.
“Over the last 12 months crypto teams have started building a track record for saving big announcements for unlock days. It’s happened so consistently that people now expect a bullish catalyst around unlocks,” Hartmann.
Substack publication Unlocks Calendar recently made a similar observation.
“As we experience positive market momentum, teams with upcoming unlocks will release good news that they withheld for months when the market was dead,” Unlocks Calendar tweeted on Jan. 14. “The goal would be riding positive market moves to pump the price just before unlocks.”
AXS is one of the several cryptocurrencies gaining ground ahead of the token unlock. Decentralized perpetuals-focused exchange dYdX’s cryptocurrency has jumped 64% this month, outperforming market leaders bitcoin and ether, despite a looming unlock on Feb. 2. APT, the native cryptocurrency of layer 1 blockchain Aptos, also rallied 40% in the week leading up to its token unlock that took place on Jan. 12. The cryptocurrency’s price has doubled to $13 since then.
“The market has become so reflexive that people buy in anticipation of unlock news,” Hartmann said, calling the new trend of releasing good news along with the token unlocks unethical.
The influence of unlocks, according to some experts, accentuates the current market trend. “Large-scale token unlocks are a complicated event that interact with the psychology of the market. Large unlocks can, in a nutshell, act as bullish catalysts in bull markets and bearish catalysts in bear markets. They release liquidity to maintain the current pattern, “In April 2021, Chris Burniske, co-founder of the cryptocurrency-focused venture capital firm Placeholder based in New York, tweeted an explanation of the positive responses to token unlocks that had occurred in early 2021.
Back then, the market was engulfed in a bull frenzy, with bitcoin setting new all-time highs nearly every other week. This month, the market experienced a bull market resurrection, with prominent cryptocurrencies bitcoin and ether rising by 35% each.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
Author
NFTs News
AXS Rises 40% Before $64 Million Token Unlock
Key Points:
- The AXS cryptocurrency from play-to-earn juggernaut Axie Infinity is surging despite the upcoming release of tokens with a value of millions of dollars.
- The Axie Infinity game’s governance token is called Axie Infinity Shards.
- AXS is one of the several cryptocurrencies gaining ground ahead of the token unlock.
The AXS cryptocurrency from play-to-earn juggernaut Axie Infinity is surging despite the upcoming release of tokens with a value of millions of dollars.
AXS has increased by almost 40% in the last day, hitting a four-month high of $13.94.
According to Coinalyze, the dollar value locked in the number of open contracts in perpetual futures linked to AXS has increased by 156% to $104 million during the last day. A price rebound and an increase in open interest point to fresh investment on the positive side.
Players can acquire, breed, grow, battle, and trade non-fungible token-based creatures known as “axies” in the blockchain-based trading and combat game Axie Infinity (NFTs).
The Axie Infinity game’s governance token is called Axie Infinity Shards
According to data source TokenUnlocks, 4.8 million AXS tokens, or 1.8% of the cryptocurrency’s 270 million total supply, will become available later on Monday. This may make the most recent bullish market movement seem puzzling.
Unlocks are seen as bearish catalysts that create liquidity and allow investors to secure gains. Tokens are locked up to stop major bag holders from selling their coins all at once and triggering price drops. These big bag holders are typically early investors or even project team members.
According to Flex Hartmann, managing partner at crypto investment firm Hartmann Capital, the confounding rally results from the hope that the Axie team will announce a positive catalyst to counteract the bearish impact of the token unlock.
“Over the last 12 months crypto teams have started building a track record for saving big announcements for unlock days. It’s happened so consistently that people now expect a bullish catalyst around unlocks,” Hartmann.
Substack publication Unlocks Calendar recently made a similar observation.
“As we experience positive market momentum, teams with upcoming unlocks will release good news that they withheld for months when the market was dead,” Unlocks Calendar tweeted on Jan. 14. “The goal would be riding positive market moves to pump the price just before unlocks.”
AXS is one of the several cryptocurrencies gaining ground ahead of the token unlock. Decentralized perpetuals-focused exchange dYdX’s cryptocurrency has jumped 64% this month, outperforming market leaders bitcoin and ether, despite a looming unlock on Feb. 2. APT, the native cryptocurrency of layer 1 blockchain Aptos, also rallied 40% in the week leading up to its token unlock that took place on Jan. 12. The cryptocurrency’s price has doubled to $13 since then.
“The market has become so reflexive that people buy in anticipation of unlock news,” Hartmann said, calling the new trend of releasing good news along with the token unlocks unethical.
The influence of unlocks, according to some experts, accentuates the current market trend. “Large-scale token unlocks are a complicated event that interact with the psychology of the market. Large unlocks can, in a nutshell, act as bullish catalysts in bull markets and bearish catalysts in bear markets. They release liquidity to maintain the current pattern, “In April 2021, Chris Burniske, co-founder of the cryptocurrency-focused venture capital firm Placeholder based in New York, tweeted an explanation of the positive responses to token unlocks that had occurred in early 2021.
Back then, the market was engulfed in a bull frenzy, with bitcoin setting new all-time highs nearly every other week. This month, the market experienced a bull market resurrection, with prominent cryptocurrencies bitcoin and ether rising by 35% each.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
