- Avalanche (AVAX) witnesses a decline in network activity and NFT performance in Q2 2024.
- The price of AVAX fell over 13% in the past seven days.
- Coin98 Analytics reported AVAX’s fees and revenue in Q2 at $3.5 million, a 22% decrease from Q2 2023.
Discover the latest insights on Avalanche’s (AVAX) performance in Q2 2024, highlighting significant trends and critical developments in the blockchain’s ecosystem.
Avalanche’s Q2 Performance Highlights
In the second quarter of 2024, Avalanche’s blockchain processed over 101 million transactions, supported by more than 43,000 daily active addresses. However, this represents a 26% year-on-year decline in active addresses and a 30% drop in daily transactions compared to the same period the previous year. The network also saw a reduction in new and unique addresses, onboarding over 2 million new addresses and recording 21 million unique ones, both figures trailing behind Q2 2023.
The Decline in Avalanche’s NFT Ecosystem
Avalanche’s Non-Fungible Token (NFT) ecosystem also faced significant setbacks in Q2. The latest data indicates that only 520,000 NFTs were created in the last quarter, marking a drastic 90% decrease compared to Q2 2023. Despite this, the DeFi sector showed resilience, with the total value hitting $0.71 billion, reflecting a 4% year-on-year increase. Additionally, the blockchain’s development activity remained generally steady, suggesting ongoing commitment to network improvements.
The Current Outlook for AVAX in Q3
The start of the third quarter doesn’t appear to shift the negative trend Avalanche experienced in Q2. Analyzing Artemis’ data, Daily Active Addresses for AVAX witnessed a sharp decline after an initial surge on July 6, 2024. This drop in activity extended to Daily Transactions and mirrored in a reduction in fees and revenue.
Recent Trends in Development Activity and NFT Trading
Evaluating Santiment’s datasets, there’s evidence that Avalanche’s development activity has also dropped in recent days. Further compounding the blockchain’s struggles, total NFT trade counts plummeted sharply after a remarkable increase on July 3, 2024. Collectively, these figures suggest an unfavorable start to Q3 for AVAX, maintaining the downtrend observed previously.
AVAX Price Movement and Market Sentiment
Regarding price action, AVAX has endured a notably bearish phase, plunging over 13% in the last week alone. Currently, Avalanche is trading at $25.70, with a market cap exceeding $10.12 billion. Should this declining trend persist, there’s potential for AVAX to fall to $22.4. Conversely, a reversal could lead AVAX to rebound to $27 within a short timeframe.
Conclusion
Avalanche ‘s Q2 2024 performance showcased a marked decline in network activity, NFT creation, and price performance. Despite some areas of resilience, such as stable development activity and slight growth in the DeFi sector, the overall outlook as we enter Q3 remains challenging. Investors and stakeholders will need to monitor upcoming developments closely to gauge possible recovery or further declines in this highly volatile market.
