Altcoin

AVAX in hostile conditions, will technological updates come to its rescue

Published

2 years ago

on

Source: StockAI

  • Avalanche made technological advancements for its validators.
  • However, weighted sentiment against Avalanche remained negative and TVL continued to decline.

In a tweet posted on 8 December, the official handle of Avalanche [AVAX] stated that it was improving its technology to benefit its validators. The platform would release new Banff 4 technology to improve bandwidth optimizations for existing validators. 

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

Avalanche crypto winter getting worse?

Despite the constant improvements in Avalanche’s technology, stakers on the platform declined by 28.03% in the last 30 days. At the time of writing, there were 43k stakers on the Avalanche network, according to data provided by Staking Rewards.

Source: Staking Rewards

Notably, Avalanche suffered in the DeFi space as well.

As can be seen from the image below, Avalanche’s TVL declined significantly over the past few months. Additionally, its TVL decreased by 3.36% in the last 24 hours, and the total value locked, at press time, was at $845.64 million.

Avalanche wasn’t able to generate enough fees as well. According to Token Terminal, the fees collected by Avalanche dwindled by 20.6% over the last 30 days.

Source: DefiLlama

NFTs spur the downfall

In fact, the network did not do well in the NFT sector, as the top NFT collections’ value fell significantly over the past month. Along with that, the number of NFTs being minted on the network also declined.

Source: AVAX NFT STATS

Moreover, the number of daily Avalanche users dipped in the last few months. Well, surprisingly, the number of transactions being made on the network also decreased and went from $2.07 million to $1.9 million over the past month. 

Source: avax.stats

Avalanche’s volume suffered as a result of its declining activity. It went from 770 million to 110 million in a month.

Coupled with that, the overall sentiment of the crypto community towards Avalanche remained largely negative. Thus, indicating that the crypto community had more negative than positive things to say about AVAX.

Source: Santiment

However, it remains to be seen whether Avalanche’s technological advancements will aid the network in the coming future.

At the time of press, AVAX was trading at $13.17. Its price had decreased by 0.16% over the last day. 

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