Altcoin project Avalanche (AVAX) is currently experiencing one of its lowest periods in history. According to on-chain data provided by crypto analytics platform IntoTheBlock (ITB), a large number of AVAX holders are grappling with significant losses and this paints a grim picture for the Blockchain project. Here are the details…
Altcoin AVAX is going through tough times
Once a formidable opponent of Terra (LUNA), Avalanche witnessed a sharp reversal of fortunes, especially when juxtaposed with her opponent’s meteoric rise. In its heyday, Avalanche had an impressive market embrace that skyrocketed its price to an all-time high of $146.22 in November 2021. However, as the cryptocurrency world has proven once again, there was a tumultuous decline after reaching the top.
The most troubling aspect of Avalanche’s current situation is the obvious misfortune of most of the long-term HODLers – those who firmly hold their AVAX coins. Data from IntoTheBlock sheds light on the fact that a staggering 99% of addresses on the Avalanche network are colored red. This alarming figure translates into a staggering 5.46 million addresses facing losses and casts doubt on the financial well-being of the numerous investors who trust the project.
The bleak landscape for Avalanche
A deeper look at the data reveals a rather bleak picture. Among the countless addresses on the Avalanche network, only 160 addresses can claim to be in profit. This stark inequality underlines the gravity of the situation and forces the overwhelming majority of investors to grapple with the fact that their investments are deeply submerged. An additional 27,640 addresses are neither in profit nor loss, highlighting the widespread recession that gripped AVAX holders.
Considering the magnitude of the crisis, the consequences for Avalanche are not to be underestimated. With the once promising project facing such dire numbers, potential investors are likely to be somewhat skeptical of blockchain for the foreseeable future. The glow that once surrounded Avalanche has no doubt faded, and the road to recovery can be a rough one.
AVAX, the 20th largest cryptocurrency
Remarkably, despite these discouraging losses, Avalanche still manages to hold its position as the 20th most-capitalized coin in the cryptocurrency market. This seemingly paradoxical success shows that investor sentiment still has an element of resilience, although it has undoubtedly been damaged. We’ll see if this sentiment is evidence of enduring belief in the Avalanche’s potential revival or simply a reluctance to quit.
As of the latest data, Avalanche’s price outlook has increased marginally by 0.98%, reaching a current value of $10.22. This marks a notable 93% drop from its once all-time high. While the modest rise may be a beacon of hope for some, the path to regaining lost ground has been paved with significant difficulties, and the Avalanche’s journey ahead is undoubtedly fraught with uncertainty. All in all, Avalanche’s current status serves as a cautionary tale in the volatile world of cryptocurrencies.
