As a researcher with experience in the crypto market, I find the current state of AVAX, the native token for Avalanche, to be concerning. The severe price drop, which saw the token fall below its yearly low and six-month low, is a significant setback for this high-cap coin.
This weekend, the native token of the Avalanche layer-1 blockchain, AVAX, experienced a significant decline, dropping over 10% at its worst point and reaching its lowest price since December 2023.
In the last 24 hours, the value of the token has dropped significantly from $27.87 to a new low of $24.92 during trading and over the past six months, as indicated by CoinGecko data.
Additionally, there has been a significant decrease of 37% for this asset during the last month, with altcoins suffering heavily in the ongoing crypto market correction.
What Has Caused the AVAX Avalanche?
“Crypto Mechanic” questioned on X on June 22, “What’s happening there?” and further expressed, “That’s the first major cryptocurrency to drop below its annual low, in my opinion.”
“The Crypto Monk has observed that the excitement surrounding AVAX has reached a peak this cycle. It seems that no factor may be able to prevent AVAX from transforming into a replica of Cardano.”
During this time, Dr. Martin Hiesboeck, Uphold’s research chief, expressed his bewilderment, stating, “The decline in AVAX‘s price seems excessive and unjustified.”
He made the remark that no one else possesses such robust growth in terms of Avalanche’s volume. Furthermore, it has been reported that renowned game developer Konami intends to debut an NFT (Non-Fungible Token) platform named Resella, which will operate on the Avalanche blockchain.
The price decline of Avax is unprecedented, defying logic given its impressive growth this year. With a total trading volume exceeding $18 billion, no similar project can match its momentum. Yet, it seems that major game developer Avalanche remains undervalued by the market.
— Dr Martin Hiesboeck (@MHiesboeck) June 22, 2024
As a blockchain analyst, I’ve uncovered some intriguing activity regarding the AVAX token. According to my findings, a significant investor or “whale” has transferred approximately 1.96 million AVAX tokens, equivalent to around $54.2 million, to various centralized exchanges such as Coinbase, Binance, and Gate. Furthermore, they have utilized THORChain for bridging transactions. This information was shared in a recent investigation post on Telegram on June 22 by the well-known blockchain investigator ‘ZachXBT’.
A significant shift in the market has caused AVAX‘s market capitalization to dip beneath $10 billion, pushing it down the list to the fifteenth spot on CoinGecko, surpassed by both Shiba Inu (SHIB) and Tron (TRX).
This year, there has been significant buzz surrounding Avalanche as a leading platform for real-world asset (RWA) tokenization stories and notable collaborations.
In the market rally around mid-March, the value of the asset reached a peak of $60. However, it is currently 83% lower than its record high in November 2021, which stood at $145.
Other Altcoins in Pain
As a researcher studying the cryptocurrency market, I’ve observed that altcoins are experiencing significant losses as the market undergoes correction. The total capitalization of the market has dropped by around 15% from its peak in 2024. Furthermore, the current market value is approximately 20% lower than its all-time high reached in 2021.
At present, it is altcoins that are bearing the majority of the losses. Specifically, Cardano (ADA), Chainlink (LINK), Near Protocol (NEAR), Polygon (MATIC), and Fetch.ai (FET) have seen their values decrease further over the weekend.
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2024-06-22 20:10