Over $1 billion in token unlocks will hit the cryptocurrency market starting on Monday, May 20. This could result in a massive sell-off event, mainly affecting Pyth Network (PYTH) and Avalanche (AVAX) investors.
Previously, Finbold reported that May would see over $4 billion in token unlocks from multiple projects. Last week, Aevo (AEVO) unlocked $1 billion, which we featured as a cryptocurrency to avoid trading due to this inflation.
Now, in the next seven days, the market will see $1.27 billion worth of token unlocks from six cryptocurrencies. PYTH dominates the seven-day overall inflation with $905.72 million worth of unlock, inflating its supply by 141.7%.
Cliff Unlocks Next 7 Days, May 19. Source: TokenUnlocksApp
Pyth Network (PYTH) to unlock nearly $1 billion in tokens
Pyth Network unlock will open the inflationary week, releasing 2.13 billion tokens on May 20. Over half of this amount is reserved for Ecosystem Growth, which is controlled and allocated by Pyth’s team. Similarly, $320 million is reserved for Publisher Reward and Protocol Development, while 250 million PYTH is for “Private Sales” investors.
As of this writing, Pyth Network was trading at $0.42 with a $630 million market cap and 1.5 billion PYTH circulating. Therefore, crypto traders should expect this massive token unlock to affect its price as sell-offs occur in the following weeks.
Pyth Network (PYTH) token unlock, May 20. Source: TokenUnlocksApp
Avalanche’s 9.55 million AVAX unlock
In the meantime, Avalanche will follow up with its monthly token unlocks on May 22. Like in previous months, the protocol will release 9.55 million AVAX, this time worth nearly $350 million.
As for the distribution, the Team will receive 4.50 million AVAX, currently worth nearly $165 million.
Furthermore, Strategic Partners and the Foundation will increase their treasury by 2.25 million and 1.67 million AVAX, respectively. This will open a future sell-off threat of over $142 million by these entities alone.
However, the most liquid unlock will be 1.13 million AVAX ($41.05 million) for community airdrop.
Avalanche (AVAX) token unlock, May 22. Source: TokenUnlocksApp
However, despite significant supply inflation with the unlocks, these tokens could still display positive price performance in the next few days. The cryptocurrency market is unpredictable, and everything can happen, even in unfavorable economic conditions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
