Connect with us
Active Currencies 14420
Market Cap $2,654,916,693,311.20
Bitcoin Share 49.90%
24h Market Cap Change $-2.63

Avalanche drops by 25%; will AVAX holders stay loyal despite the unrest

2min Read

Despite holding AVAX through thick and thin, the token has offered almost nothing to its faithful. So, what’s the current sentiment around AVAX?

Share this article

  • Almost 100% of  AVAX holders plunged into losses.
  • While volatility remains high, traders continue to overlook AVAX contracts.

“They say this is a big rich town. I just come from the poorest parts.” These lyrics coined from 50 Cents’ Big Rich Town perfectly matches the state of Avalanche [AVAX] whose holders have had to deal with losses for a long period. 

Compared to the other cryptocurrencies in the top 20 per market cap, AVAX seemed to be the only one in this state.


Is your portfolio green? Check the Avalanche Profit Calculator


And while these holders may have hoped for respite, that has not been the case. To make matters worse, IntoTheBlock data showed that 99.5% of AVAX holders were now holding the token at a loss.

No result for diamond hands 

Although holders of AVAX have held the token through thick and thin, this is the first time that almost 100% of the holders would have no profit to show for their loyalty. Undeniably, AVAX’s price performance this year has been largely responsible for the current condition.

In the last 90 days, AVAX has lost 25.70% of its value. On a Year-To-Date (YTD) basis, it has not been any better, decreasing by 51.16% in the process. Besides its price action, other parts of the Avalanche ecosystem have been the same— sometimes, worse off.

One such case was Avalanche’s Total Value Locked (TVL). Used to measure the total value of digital assets staked or locked in a distributed application, the TVL shows how much trust investors have in a protocol. At the time of writing, Avalanche’s TVL was down to $536.12 million— an 18.55% decrease in the last month.

Avalanche TVL

Source: DefiLlama

So, the decline in TVL suggests that Avalance has become a protocol that market participants have avoided. Therefore, opening its health to potential risks.

Great for development, not the token

But in terms of development activity, Avalanche ensured that upgrades on its network remained active. At the time of writing, AVAX’s development activity had risen to 29.9. 

This increase suggested that the public GitHub repositories linked to Avalance have been impressive. But can this change the course of its price action? Well, the two-week price volatility suggested that AVAX’s price could tilt far away from its current value. 

At press time, the price volatility had increased to 0.069. However, the hike also depicts that AVAX’s price could move in either direction. Either the value skyrockets highly or the plunge would be massive.

AVAX price volatility and development activity

Source: Santiment


Read Avalanche’s [AVAX] Price Prediction 2023-2024


As a result of AVAX’s underwhelming state, traders have overlooked opening contracts linked with the token.

At the time of writing, the Open Interest was $76.66 million. Open Interest is the total value of outstanding derivatives contracts for an asset. So, the decrease implies that liquidity flowing into AVAX contacts has decreased.

AVAX open interest

Source: Coinglass

Share

Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.