Will Investors Continue to Stay Committed to AVAX Despite the Sharp Decline in Avalanche?

• When compared with the top 20 cryptocurrencies in terms of market value, AVAX seems to be the only cryptocurrency in this situation. Investors may have had hopes of relief, but that was not the case.
• Although AVAX holders have held onto the token, whether good or bad, they will not have any profits to show for the loyalty of almost 100% of the holders.
• TVL shows how much investors trust a protocol. At the time of writing, Avalanche’s TVL has dropped to $536.12 million – a decrease of 18.55% in the past month.

AVAX investors are going through tough times; is there any sign of an exit from this darkness for AVAX investors who are reaching the point of exhaustion?

AVAX Price Experienced a Sharp Decline

“They say this is a big and rich town. I come from the poorest areas.” These words, taken from 50 Cent’s Big Rich Town, perfectly match the situation of Avalanche (AVAX), which has been dealing with losses for a long time.

When compared with the top 20 cryptocurrencies in terms of market value, AVAX seems to be the only cryptocurrency in this situation. Investors may have had hopes of relief, but that was not the case. Moreover, according to IntoTheBlock data, 99.5% of AVAX holders are now holding the token in a loss situation.

Although AVAX holders have held onto the token, whether good or bad, they will not have any profits to show for the loyalty of almost 100% of the holders. Undoubtedly, this year’s price performance of AVAX is largely responsible for the current situation.

In the past 90 days, AVAX has lost 25.70% of its value. Looking at the year-to-date, it is not much different, as it has dropped by 51.16% during the process. Beyond price movement, some other parts of the Avalanche ecosystem are in the same, or sometimes worse, condition.

One example is Avalanche’s Total Value Locked (TVL) situation. TVL, used to measure the total value of the digital assets in question in a decentralized application, shows how much investors trust a protocol. At the time of writing, Avalanche’s TVL has dropped to $536.12 million – a decrease of 18.55% in the past month.

Therefore, the decrease in TVL shows that Avalanche has become a protocol that market participants avoid. This makes it vulnerable to potential risks.

Although the situation is not good for AVAX token, developments continue at full speed

In terms of development, Avalanche has made sure that upgrades on its network remain active. At the time of writing, AVAX’s development activity has reached 29.9.

This increase shows that the general GitHub repositories associated with Avalanche are impressive. But can this change the direction of price movement? Two-week price volatility suggests that AVAX’s price can deviate significantly from its current value.

At the time of writing, price volatility had risen to 0.069. However, this increase indicates that AVAX’s price can either reach a very high level or experience a significant drop.

Due to AVAX’s disappointing situation, traders have ignored contracts associated with this token.

At the time of writing, Open Interest was $76.66 million. Open Interest is the total value of outstanding derivative contracts for an asset. Therefore, this decrease means that the liquidity entering AVAX contracts has decreased.