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Avalanche’s [AVAX] key metrics can decline further- Here’s why

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Avalanche's [AVAX] key metrics can decline further- Here's why

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  • Avalanche’s TVL and market capitalization declined over the last week.
  • A few metrics were positive but market indicators supported the bears.

AVAX Daily, a popular Twitter handle that posts updates related to the Avalanche [AVAX] blockchain, recently published the network’s weekly report.

The tweet stated that AVAX’s market capitalization registered a double-digit decline of 13% in the last seven days. Along with the market cap, AVAX’s total value locked (TVL) also went down by more than 3%. 

Read Avalanche’s [AVAX] Price Prediction 2023-24

Is a revival possible?

While the market cap and TVL declined, the number of active addresses, on the other hand, increased. This was a positive development, reflecting increased usage of the Avalanche network.

Moreover, Dune’s data revealed that Avalanche’s new weekly addresses had gained upward momentum since the beginning of this year. 

Source: Dune

Besides, growth was also noted in terms of fees. As per Token Terminal, after a steady decline, fees and revenue from Avalanche spiked on 3 March 2023.

Quite a few other on-chain metrics also supported Avalanche. For instance, AVAX’s demand in the futures market remained pretty decent, which was evident from its Binance funding rate.

LunarCrush’s data revealed that bearish sentiments around Avalanche went down by over 50% last week, indicating the crypto community’s confidence in the token.

Furthermore,  AVAX’s popularity increased considerably as its social volume registered a major uptick in recent days. In addition to that, AVAX ranked second on the list of the top DeFi projects by the Twitter audience, further establishing its popularity. 

However, the coin’s development activity metric moved southward over the last week, which can bring trouble as it indicated that fewer efforts were being put by the developers to improve the network. 

Source: Santiment

How much are 1,10,100 AVAXs worth today

Bears to lead the market for some time

Meanwhile, a look at AVAX’s daily chart gave more reasons to worry. Consider this- the Exponential Moving Average (EMA) Ribbon displayed the possibility of a bearish takeover as the 55-day EMA was about to flip the 20-day EMA.

AVAX’s Money Flow Index (MFI) went down considerably from the neutral zone, which was a bearish signal.

The Chaikin Money Flow (CMF) was also below the neutral zone, further increasing the chances of a price decline. At press time, AVAX was down by nearly 2% in the last 24 hours and was trading at $16.35.

Source: TradingView


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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