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Saturday, December 21, 2024

Avalanche Stuck in Bear Trap: 99.5% of AVAX Investors Are Holding Tokens at Loss

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The brutal bear market in crypto has significantly affected the price of AVAX. The latest downturn not just extended its weekly losses beyond 17% but also pushed the crypto asset to a multi-year low of $10.14.

As a result, the number of AVAX holders in profit has reached an all-time low. Nearly 99.5% of the investors who own Avalanche’s native token are currently at a loss. According to IntoTheBlock’s latest findings, this isn’t the first time the asset has witnessed similar levels.

  • Previous lows were recorded in June following the dual implosion of Terra’s UST and LUNA, followed by December, a month after FTX’s bankruptcy.
  • However, ITB revealed that it is the first time that nearly all AVAX holders are holding at a loss.
  • The AVAX ecosystem had several crucial developments this year. This includes Alibaba Cloud – a subset of Chinese e-commerce conglomerate Alibaba – joining forces with Avalanche for a launchpad to deploy metaverses on the layer 1 blockchain.
  • Avalanche, along with other crypto players, teamed up with MasterCard, a collaboration that was aimed at helping the payments giant strengthen its foothold in the Web3 space.
  • More recently, the Avalanche Foundation unveiled a $50 million initiative – Avalanche Vista – to invest in real-world asset (RWA) tokenization.
  • It was also found that the brief depeg of USDC stablecoin in the first quarter of 2023 triggered a surge in transactions and active users on Avalanche. However, the ecosystem developments had a negligible impact on the price side of things.
  • In fact, AVAX is currently under significant pressure, and the upcoming token unlock worth approximately $99 million, which is slated to be released on August 26th, is further expected to increase the selling pressure.

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