Axie Infinity to release millions of tokens as prices continue to slide

• Axie Infinity will unlock tokens worth over $70 million on 20 October.
• This is the largest token unlock event scheduled to take place this month.

Leading play-to-earn (P2E) blockchain gaming platform Axie Infinity [AXS] will conduct its next token unlocking event on 20 October, according to information retrieved from Token Unlock.

Realistic or not, here’s AXS’ market cap in BTC terms

The event will see the unlocking of 15.13 million AXS tokens, which represent 12% of the token’s circulating supply. This represents the largest token unlock event of the month, with a total value of over $70 million at the altcoin’s current price.

According to Token Unlock, the distribution will include the release of 6.08 million AXS to the team behind the gaming project, 554,750 AXS for advisors, 3.38 million AXS as play-to-earn incentives, 1.69 million AXS to its ecosystem fund, and 3.43 million AXS as staking rewards.

AXS has a total supply of 270 million tokens, with 132 million circulating. As of this writing, 64.79 million AXS tokens remain unlocked. 

Source: Token Unlock

AXS does not take well to “unlocking”

Token unlock events can be bearish for an asset’s price as they see the injection of previously frozen liquidity into the market. For crypto assets with low traction, the increase in supply is not often met by a corresponding uptick in demand, putting downward pressure on the price.

Axie Infinity conducted its last token unlocking event on 22 July, and this saw the release of 3.43 million tokens worth $16 million. According to data from CoinMarketCap, AXS value declined by almost 10% in the ten days following the token release event.

As attention continues to shift from the P2E gaming platform, AXS’ value has declined significantly. On a year-to-date, AXS price has dropped by 23%. The governance token traded at $4.60 at press time, witnessing a 2% price fall in the last 24 hours. 

While accumulation exceeded token sell-off amongst the alt’s daily traders, the liquidity needed to drive up price significantly remained missing from AXS’ spot markets.

The indicators say this…

The token’s key momentum indicators observed on a 24-hour chart were positioned above their respective center lines. For example, the Money Flow Index (MFI) was 61.83, and its Stoch RSI’s K line (blue) was pegged at 68.12%. This suggested that traders accumulated AXS more than they sold.

Moreover, the state of the Directional Movement Index (DMI) on the daily chart confirmed the buyers’ strength. At press time, the Positive Directional Movement Index (green) at 22.87 rested above the Negative Directional Movement Index (red) at 16.08. This signaled that the accumulation trend outpaced the distribution.

How much are 1, 10, or 100 AXS worth today?

However, despite the token accumulation, AXS’ Chaikin Money Flow (CMF) remained negative at -0.06.

It means that the buying pressure was not strong enough to offset the selling pressure. This is often regarded as a bearish signal that can result in a further decline of an asset’s value. 

Source: AXS/USDT on TradingView