Avalanche Plummets Double-Digits as Crypto Meltdown Continues

By Sujith Somraaj

Several tokens backing so-called Ethereum killers have posted double-digit losses over the past 24 hours, with Avalanche leading the bearish action.

Avalanche (AVAX), the native token of the smart-contracts platform led by former Cornell professor Emin Gün Sirer, shed nearly 16% of its value in the past 24 hours and is currently trading at $27.94, according to data from CoinMarketCap.

AVAX is the 13th-largest cryptocurrency with a market capitalization of $7.6 billion. Today’s bearish action now puts the token 80% down from its all-time high of $146.22 recorded back in November 2021.

Part of this drop could be attributed to slowed growth on various DeFi projects built on Avalanche.

The total value locked (TVL) across all the DeFi protocols on the Avalanche blockchain stands at $4.74 billion down 8.57% over the past 24 hours according to data from Defi Llama. The TVL hit an all-time high of $13.7 billion recorded on December 2, 2021.

In purely AVAX terms, the drop has been nearly as significant, with the data platform indicating a dip of 7.5%. 

Avalanche TVL measured in AVAX. Source: DeFi Llama.

TraderJoe, the largest decentralized exchange on the network, dropped 12.84% of its users over the past week, according to data from DappRadar. The available liquidity on the exchange has also slipped, dropping to $577 million from $982 million in less than a month’s time according to analytics provided by the exchange.

Despite the tremendous growth in the number of active wallets on the Avalanche network, the token ended up in bearish action. The total active wallets on the avalanche network have reached 2.8 million yesterday, hitting an all-time high according to data from SnowTrace.

The total transactions on the avalanche network also halved from roughly 800,000 last week to 358,474 just yesterday. 

The transactions hit an all-time high of 1.1 million per day recorded on January 27, 2022, according to data from SnowTrace.

Avalanche and the crypto crash

Besides Avalanche, several layer-1 crypto projects have plummeted too.

Polkadot (DOT) is down 8% in the past 24 hours, Solana (SOL) is down 9.7%, Celo (CELO) is down 10%, the Near Protocol (NEAR) is down 12%, Kadena (KDA) is down 18%, while Fantom (FTM) is down 9.6% over the same period of time.

Bitcoin (BTC) is meanwhile down 3.3% over the past 24 hours and currently trades at around $28,900 according to data from CoinMarketCap. 

Ethereum (ETH) is down 5.4% over the span, changing hands at $1,920.

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