AVAX Price Plummets: Is This the End of the Avalanche Roadmap?
- AVAX has retraced all its gains from November
- Its apparently resurgent network activity from a week ago vanished as well
Alas, dear friends, it seems the mighty Avalanche [AVAX] has fallen from its lofty perch, back to the depths of despair, where it once dwelled in November. The strong gains it made when Bitcoin [BTC] pumped from $68k to $106k have been reduced to naught but a distant memory. And, as if the universe itself was mocking us, BTC retains most of its own gains, leaving AVAX to wallow in its own mediocrity.
But, as the great philosopher once said, “When life gives you lemons, make lemonade.” Or, in this case, when life gives you a weak price chart, point out the ecosystem development activity that’s been on the rise over the last six months. Yes, it’s a small consolation, but someone has to keep the spirits high.
In a Santiment Insights post, user Brian listed some of the top protocols across the crypto sphere that saw high development activity. And, lo and behold, Avalanche noted a 10% hike in activity over the last six months – An encouraging sight, indeed. But, as we all know, the devil is in the details, and we must look closer at some other metrics to understand if investors should be enthused or cautious.
Active addresses and network growth slump is a warning
The total value locked (TVL) hit a local peak of $1.65 billion in mid-December. But, alas, it has receded since, standing at $1.28 billion at press time. And, as if that wasn’t enough, transaction counts also reached local highs in January, but now stand at a mere 350k, a far cry from the 500k transactions a day that were once common.
But, dear friends, the worst part is yet to come. The significant surge in active addresses and new addresses in the first week of February has almost entirely vanished. And, as if to rub salt in the wound, zero balance addresses also trended in lockstep with the network’s active addresses. In fact, over the past week, new addresses dropped by 95% and active addresses by 84% – A sign of a lack of confidence in the market.
Crypto analyst Ali Martinez used the in/out of the money around price chart to highlight the importance of the $26-level. Investors should remember that the chart is based around price, meaning $26 is a local demand zone. And, as the daily price chart revealed earlier, the trend right now is strongly bearish. The price is back at its November lows. Falling active addresses and network growth seemed to hint at reduced demand. Hence, a quick recovery may be unlikely for Avalanche [AVAX].
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2025-02-15 18:18