The AVAX native token for the layer-1 blockchain Avalanche has experienced a significant downturn, dropping more than 10% over the weekend. This slump caused the token to fall to its lowest level since December 2023, reaching an intraday and six-month low of $24.92. The overall market sentiment towards altcoins has taken a hit, with AVAX suffering a 37% decrease in value over the past month.
Cryptocurrency enthusiasts and analysts have raised concerns about the drastic decline in AVAX’s price. Some have compared it to “becoming Cardano 2.0,” suggesting that the hype surrounding the token has faded significantly. Dr. Martin Hiesboeck, head of research at Uphold, expressed confusion over the downward trend, stating that the price movement makes no sense given Avalanche’s high trading volumes.
Whale Activity and Market Impact
Reports have emerged of a large whale moving a substantial amount of AVAX to centralized exchanges, causing a further drop in the token’s market capitalization. This move has pushed AVAX down to fourteenth place in terms of market ranking, below tokens like Shiba Inu and Tron. The market cap of AVAX has fallen below $10 billion, marking a significant loss in value.
The broader cryptocurrency market has been experiencing a correction, with total capitalization decreasing by 15% from its 2024 high. Altcoins like Cardano, Chainlink, Near Protocol, Polygon, and Fetch.ai have all seen declines as investors brace themselves for more volatility. The ongoing market correction has impacted several altcoins, with AVAX being one of the tokens facing significant pressure.
Overall, the decline in AVAX’s price reflects the current state of the crypto market, where volatility and uncertainty are driving fluctuations in value. As investors navigate these turbulent times, it will be essential to closely monitor market trends and developments to make informed decisions regarding their cryptocurrency holdings.
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