In the past 30-days, the trading price of Avalanche (AVAX) has experienced a 45% dip. It is to be noted that in the same time period, the market valuation of the entire cryptocurrency industry has dipped by 29%.
Despite facing a downtrend in the past 30-days, Avalanche hasn’t lost its reputation as one of the most competitive cryptocurrencies in the layer 2 and layer 1 DeFi infrastructures.
The decentralized application (DApp) platform is also known for being one of the top performers in terms of active addresses and smart contract deposits.
Despite having achieved so much, the recent downtrend of Avalanche has raised concerns among many investors. These investors are forced to rethink whether Avalanche is still a strong competitor versus the rest of the cryptocurrencies in the same space or not.
AVAX Revisits $14.80 Multiple Times
In the past 30-days, AVAX has undergone multiple sell-offs. These sell-offs have caused the trading price of AVAX to test a particular support mark on a number of occasions. The particular support mark that Avalanche has tested multiple times is $14.80.
Even after the price plunges, the total value locked (TVL) of Avalanche is quite impressive. The data shows that Avalanche’s TVL is worth $3.2 billion.
AVAX’s Comparison with SOL
If we compare Avalanche with Solana, which offers extremely low transaction fees, we see that it is outperforming the network as well. At the time of writing, the TVL for SOL is worth $2.1 billion. Still, the market valuation of SOL is extremely higher as compared to AVAX’s market valuation.
At present, the overall market valuation of Solana is worth $12.9 billion.
Avalanche is Losing Network Addresses
The data from DappRadar shows that in the past month, a great decline was recorded on the network addresses for Avalanche. The recorded drop in the network addresses of Avalanche is 42%.
On the other hand, the drop rate in the network addresses for Polygon was 29%. Then the drop rate recorded for the same BNB Chain was 16%.
What is the Future of Avalanche?
Taking the drop rate in the network addresses and the price plunge in the past 30-days, it can be said that Avalanche may continue experiencing a downtrend.
Even the investors are still having second thoughts about the upcoming situation of Avalanche. They are currently skeptical about Avalanche and want to remain very cautious when making decisions in favor of AVAX.
If the price of AVAX keeps revolving around $14.80 and doesn’t make a significant jump, then it may fail in attracting more investors. This would cause AVAX to lose more investors and its price may start moving in the lower direction.