The AVAX native token for the layer-1 blockchain Avalanche has experienced a significant downturn, dropping more than 10% to its lowest level since December 2023. In just 24 hours, the token plummeted from $27.87 to an intraday low of $24.92, marking a dramatic 37% decline over the past month. This steep decline in value reflects the broader trend of altcoins struggling amid a market pullback.
Cryptocurrency enthusiasts and analysts have been quick to weigh in on the situation, with mixed opinions on the future of AVAX. Some have expressed concern about the token’s performance, with one user dubbing it “the first high cap coin that broke the [yearly] low.” Others have been more pessimistic, comparing AVAX to “Cardano 2.0” and suggesting that its hype may have come to an end.
Dr. Martin Hiesboeck, the head of research at Uphold, has questioned the logic behind AVAX’s price decline, noting that its growth momentum is unmatched by other assets. Despite this, reports indicate that a large whale has been moving significant amounts of AVAX to centralized exchanges, causing further downward pressure on the token’s market cap. This has resulted in AVAX slipping in the rankings, falling below $10 billion in market capitalization.
Despite its recent struggles, Avalanche has been at the forefront of crypto hype this year, particularly in the realm of real-world asset tokenization narratives and strategic partnerships. Major game developer Konami is set to launch an NFT platform on the Avalanche blockchain, adding to its growing ecosystem. However, the token’s price remains a shadow of its mid-March peak, sitting 83% below its all-time high of $145 from November 2021.
The decline of AVAX is emblematic of the broader altcoin market, which has seen a 15% drop in total capitalization from its 2024 high. Altcoins such as Cardano, Chainlink, Near Protocol, Polygon, and Fetch.ai have all faced similar challenges, with prices continuing to slide amidst ongoing market corrections. As the crypto landscape evolves, it remains to be seen whether AVAX and other altcoins will be able to regain their footing and bounce back from this period of turbulence.
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