The AVAX native token for the layer-1 blockchain Avalanche has experienced a significant decline in value, plunging more than 10% in a single weekend to reach its lowest level since December 2023. In the past 24 hours alone, the token has dropped from $27.87 to a six-month low of $24.92, as reported by CoinGecko. This downward trend has been part of a larger slump, with the asset losing a staggering 37% of its value over the course of the past month. The overall decline of altcoins in the current crypto market pullback has contributed to AVAX’s struggle.
Various experts and analysts have expressed their concerns and opinions regarding AVAX’s recent performance. Some have pointed out that AVAX is the first high-cap coin to break its yearly low, indicating a bearish trend in the market. Others have compared AVAX to Cardano, suggesting that the hype surrounding the cryptocurrency has faded significantly. Dr. Martin Hiesboeck, the head of research at Uphold, has stated that the price decline of AVAX seems unjustified, considering the growth momentum of the Avalanche blockchain network. The launch of an NFT platform called Resella by major game developer Konami on the Avalanche blockchain has also raised questions about the overall health of the ecosystem.
Market Movements
Blockchain analysts have observed a significant movement of AVAX tokens by a whale to various centralized exchanges, including Coinbase, Binance, and Gate. This massive transfer of 1.96 million AVAX, valued at $54.2 million, has contributed to a decrease in AVAX’s market capitalization, causing it to fall below $10 billion and lose its ranking to fourteenth place. Despite the initial hype surrounding Avalanche for real-world asset tokenization narratives and partnerships, the cryptocurrency has struggled to maintain its value, currently down 83% from its all-time high in November 2021.
The decline of AVAX is reflective of the broader correction in the cryptocurrency market, with total capitalization falling 15% from its recent high. Altcoins like Cardano, Chainlink, Near Protocol, Polygon, and Fetch.ai have also experienced significant losses in value, signaling a bearish sentiment in the market. As the crypto markets continue to adjust, it is crucial for investors and stakeholders to closely monitor these trends and assess the underlying factors contributing to the decline of specific assets like AVAX.
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