Axie Infinity (AXS) positioned itself among the leading and most popular ‘play-to-earn’ blockchain games during 2021’s gaming mania in the cryptocurrency market. The project gathered hundreds of thousands of players, attracting investors and speculators due to its financial nature.
However, Axie Infinity’s native token could suffer a significant impact in price until October 20, as 15.13 million AXS ($64.44 million) of new tokens will be put into circulation on this day. According to data retrieved by Finbold from token.unlocks.app on October 14.
Notably, this massive token unlock amounts to 11.5% of Axie Infinity’s current circulating supply of 141.31 million AXS, overcoming the total exchanged volume of $40.12 million for the token in the last 24 hours from press time. Considering the market’s uncertainty, a sell-off event could drive the project’s price further down.
Axie Infinity (AXS) market data. Source: CoinMarketCap
From the total unlocked amount, distribution will be as follows:
Team (40%): 6.08 million AXS ($25.91 million)Advisors (3.66%): 554,750 AXS ($2.36 million)Play to Earn (22%): 3.38 million AXS ($14.38 million)Ecosystem Fund (11%): 1.69 million AXS ($7.19 million)Staking Rewards (23%): 3.43 million AXS ($14.59 million)
Axie Infinity (AXS) token unlock on October 20. Source: token.unlocks.app
Axie Infinity (AXS) price analysis
Meanwhile, Axie Infinity is exchanging hands at $4.27 by press time, with a daily increase of 1.02% in the last 24 hours. AXS has lost close to 15% of its value in the month (last 30 days), moving from $5.02 to current prices. This indicates that the market could have already been pricing the tokens unlock.
AXS 1-month price chart. Source: Finbold
It is important to say that the order book for the highest volume pair (AXS/USDT on Binance) has around only 163,266 AXS buying orders from $4.2 to $2.5 per Axie Infinity token, at the time of publication.
Meaning that, if only 1% of the unlocked total on October 20 is sold in a single order on Binance for USDT, the order book would be completely whipped, driving AXS price to $2.5. Despite this being an unlikely scenario, it helps to demonstrate the weight of the reported upcoming event.
AXS/USDT order book. Source: Binance
All things considered, it is impossible to know the real impacts on AXS price, with more tokens being put into circulation through this unlock. Price action will depend on further developments related to Axie Infinity, as well as the general sentiment on the wider cryptocurrency market and macroeconomic landscape.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
