Axie Infinity, the popular blockchain-based game developed by Sky Mavis, has completed its first major token unlock, releasing 21,543,000 AXS tokens into circulation. While early investors transferred a portion of these tokens to centralized exchanges like Binance and FTX, the price of AXS defied expectations by rebounding sharply after the unlock.
Key Developments in the AXS Unlock Event
Token Unlock Details
- Unlocked Amount: 21,543,000 AXS (~$194 million at $9/AXS).
Early Investor Movements:
- An investor transferred 187,500 AXS (~$1.7M) to Binance shortly after unlock.
- Vesting contracts released 785,334 AXS (~$6.6M) to 6 early backers, including Arca, DeFiance Capital, and Delphi Digital.
- Arca moved 437,500 AXS (~$4M) to FTX, signaling potential sell pressure.
Market Reaction
- Price Action: AXS dipped 23% pre-unlock (from $10.73 to $8.26) but surged 14.77% post-unlock, peaking at $9.40.
- Liquidations: Short squeezes cleared $1.6M in bearish positions—the highest in 3 months.
- Futures Data: Negative funding rates indicated heavy shorting pre-unlock, with Binance rates spiking to 0.14% (153.3% annualized).
Why AXS Defied the "Sell the News" Trend
- Profit-Taking Already Priced In: The pre-unlock drop likely absorbed most sell pressure.
- Strategic Holding: Institutions like Delphi Digital (~$6.8M AXS) haven’t moved tokens, reducing immediate supply.
- Speculative Rebound: Low liquidity and high short interest fueled a rapid bounce.
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FAQs: AXS Token Unlock Explained
Q: How much AXS was unlocked?
A: 21.54 million AXS (~11% of circulating supply at the time).
Q: Did early investors sell their tokens?
A: Partial sales occurred (e.g., Arca’s $4M transfer), but major holders like Delphi Digital held firm.
Q: Why did AXS price rise post-unlock?
A: Markets anticipated heavier dumping; the actual event was less severe than feared, triggering short covers.
Long-Term Outlook for AXS
Despite the rebound, AXS remains 90% below its all-time high. Key factors to watch:
- Ecosystem Growth: Adoption of Axie Infinity’s new land gameplay and Ronin Chain upgrades.
- Market Sentiment: Crypto’s macro recovery could lift AXS if the project delivers utility.
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Note: This analysis excludes promotional links and ad-related content per guidelines. Data sourced from Etherscan, Coinglass, and TokenUnlock.
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