Avalanche Market Tumbles as TVL & Market Cap Drop: Is a Revival Possible?
• The Avalanche [AVAX] network saw a decline in its Total Value Locked (TVL) and market capitalization over the past week.
• Positive metrics like active addresses, fees, futures market demand and social volume were noted.
• Bearish sentiment towards AVAX decreased, indicating confidence in the token among the crypto community.
Avalanche’s Market Performance
The Avalanche [AVAX] blockchain recently posted its weekly report on Twitter. It stated that AVAX’s market capitalization had dropped by 13% in the last seven days while TVL also declined by more than 3%.
Apart from the fall in these two indicators, there were some positive developments as well. The number of active addresses increased which showed increased usage of the network. Moreover, Dune reported that Avalanche’s new weekly addresses had gained upward momentum since the beginning of this year. Fees and revenue from AVAX also spiked on 3 March 2023 according to Token Terminal data. Additionally, AVAX’s demand in the futures market remained stable with a high Binance funding rate.
Sentiment & Popularity
LunarCrush reported that bearish sentiment towards Avalanche had gone down by more than 50%, signifying confidence among crypto users. Furthermore, AVAX gained significant popularity as it ranked second on Token Terminal’s list of top DeFi projects by unique monthly Twitter audience. Social volume around AVAX also surged significantly in recent days.
However, development activity related to AVAX decreased which could be concerning for investors as fewer efforts are being put into developing the project further.
Overall, Avalanche has been performing quite well with some positive developments but a decrease in development activity could be troubling for investors looking forward to long-term growth of their investments into AVAX tokens.