The native token of the Avalanche blockchain, Avax, has been removed from K33’s ranking of the most promising tokens in the blockchain space. The decision to eliminate the token was made after reevaluating the projected inflationary pressure and ownership concentration in the aftermath of impending unlocks. Avax’s most recent unlock is slated for this month and will put into circulation tokens valued at $168 million at the market price.
According to data from token management platform Token Unlocks, 9,541,800 Avax tokens, which are now valued at more than $168 million, are scheduled to be released on May 28, precisely one month from today. The over 10 million Avax that will be released represents more than 3% of the total amount of tokens in circulation, which now stands at 327 million.
According to K33 analysts, the unlocking event is also anticipated to have a detrimental effect on the cost of Avax. In a recent report, the business also disclosed that it has taken Avax off of its K33-Vinter index, which is made up of an equal-weighted combination of the top 30 crypto assets’ most promising tokens.
K33 Vice President Anders Helseth provided a Thursday update, saying “The K33 Vinter Quality index selection has changed from the February 1, 2023, selection.” “The Avalanche Network’s native token, AVAX, has been removed from the index.”
Helseth explained that the decision to exclude Avax from the index resulted from a new evaluation of predicted inflationary pressure and ownership concentration. According to him, “AVAX has a significant portion of tokens outstanding from future supply through rewards and, more significantly, through vesting schedules.”
According to statistics from Token Unlocks, more than 361.25 million Avax tokens, or more than half of the cryptocurrency’s supply, are still locked. Over the following seven years, these locked tokens will gradually become available, with the final patch expected to be made available on October 20, 2030.
Avalanche is a decentralized platform for establishing business blockchain installations and DeFi applications in a highly scalable environment. The Avalanche mainnet was introduced in September 2020 by the research and development company Ava Labs, located in New York.