Avalanche's poor performance ahead of $365 million unlock | CoinDesk JAPAN

• Ahead of unlock, Avalanche has underperformed the broader crypto market over the past week, according to data from CoinDesk.
• Approximately $365 million worth of Avalanche is expected to be unlocked and added to circulation on the 22nd, according to Token.Unlocks data.

Avalanche (AVAX), the native token of the Avalanche network, announced this week that an unlock worth $365 million (approximately 54.75 billion yen, equivalent to 150 yen to the dollar) will increase the supply of tokens ( (unlocked), which underperformed most digital assets.

Of the 173 stocks in the CoinDesk Market Index (CMI), 148 are up, with most crypto assets rising over the past week, but Avalanche is down more than 3%. The CoinDesk 20, which consists of the 20 largest and most liquid crypto assets, rose 6% during the same period. At the time of writing, Avalanche is trading at $38, about 23% below its December high.

According to Token.Unlocks data, approximately 9.5 million locked Avalanche tokens (worth $365 million) will be unlocked on the 22nd, increasing the circulating supply by approximately 2.6%. This results in performance degradation.

Approximately 4.5 million tickets will be distributed to team members, 2.25 million tickets to strategic partners, 1.67 million tickets to the Ecosystem Development Foundation, and 1.13 million tickets will be allocated for airdrops.

According to on-chain data, approximately 58% of all Avalanche tokens are unlocked.

Unlocking releases locked coins, including those granted to early investors, from the no-sale period, leading to an increase in supply.

A report from analytics firm The Tie last year found that large unlocks typically lead to price declines within two weeks, as increased supply outstrips investor demand for the crypto asset.

｜Translation and editing: Rinan Hayashi
｜Image: CoinDesk
｜Original text: Avalanche's AVAX Underperforms Ahead of $365M Token Unlock