AVAX down 30% in 30 days – These are the reasons
- AVAX’s price has declined by 30% in the past 30 days.
- This has been due to low user activity on the Avalanche C-Chain network.
An on-chain assessment of the proof-of-stake- blockchain network revealed that the decline in AVAX’s value was due to the decline in user activity on its C-Chain.
Although Avalanche is made up of the P, X, and C-Chains, the C-Chain is considered to be the most important chain in the network because it is the one that allows users to create and interact with decentralized applications (dApps).
Avalanche C-Chain sees a decline
Data from Artemis showed that Avalanche C-Chain has witnessed a significant decline in demand in the last month.
For example, the daily count of unique wallet addresses sending on-chain transactions on the chain has plunged by over 45% in the last 30 days.
Due to the drop in its number of users, the count of transactions recorded on the C-Chain in the last month has plummeted.
With only 266,820 transactions completed on the network during that period, it has seen a 95% drop in daily transaction count.
A natural consequence of low user activity on a network is a corresponding decrease in fees recorded.
AMBCrypto found that during the period under review, fees paid to complete transactions on Avalanche C-Chain have totaled $39,000, dropping by 97%.
For context, on the 22nd of December 2023, the chain recorded transaction fees totaling $1.25 million. As of the 19th of January 2024, it closed the day with a total of $39,000 recorded in fees.
Revenue derived from these fees has suffered a similar decline. In the last month, this has also dwindled by over 95%.
How much are 1,10,100 AVAXs worth today?
Regarding the network’s decentralized finance (DeFi) vertical, the low user count has led to a 16% dip in its total value locked (TVL).
Also, the total volume of transactions completed through the decentralized exchanges (DEXes) housed on the blockchain network has fallen by 53% in the last month.