The avalanche (AVAX), nicknamed the “Ethereum killer,” is down over 16% in the wake of a catastrophic cryptocurrency market scenario. Other crypto tokens that are also rivals to Ethereum have experienced double losses in the last 24 hours.
AVAX, considered number 13y The largest cryptocurrency with a market capitalization of $7.6 billion, has fallen significantly from over 16% of TVL in the past few hours, and is now trading at $27.94.
Afax is on a downward path
AVAX is leading the downward movement, causing the coin to drop 80% from its all-time high of $146.22 in November 2021.
The downtrend is being catalyzed by the slow growth of various DeFi projects that hedge the avalanche.
Avalanche – Ethereum Competitor
The price of Ethereum is said to be slow and expensive, which paved the way for the creation of Avalance, which is environmentally friendly, fast and affordable.
Avalance is created by Ava Labs, co-founded by Kevin Sekniqi, Emin Gün Sirer, and Maofan “Ted” Yin.
Ethereum’s killer, Avalanche, is a blockchain that combines leading speed in confirmation times as well as scaling capabilities using the Avalanche Consensus Protocol, which can process more than 4,500 transactions per second (TPS).
AVAX total market cap at $8.98 billion on the daily chart | Source: TradingView.com
Avalanche was launched and launched in September 2020 and is considered one of the most popular blockchain giants. Avalance now owns $11 billion in TVL, making it the fourth largest DeFI-based blockchain, after Terra and Binance Smart Chain.
Avalanche has derived some of the protocols from Ethereum that you can try in the DeFi ecosystem, including SushiSwap, its decentralized exchange protocol, and Aave, its lending protocol.
DeFi Projects TVL down 8.57%
TVL for DeFi protocols on the Avalanche blockchain is currently down 8.57% in the last 24 hours, or $4.74 billion. That’s relatively low compared to TVL’s all-time high, which reached $13.7 billion on December 2, 2021.
The 7.5% drop was very significant for AVAX.
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The total active portfolios on the avalanche network rose to over 2.8 million yesterday, an all-time high. However, despite the increase in active portfolios, the token is still bearish.
To make matters worse, the total avalanche trades also decreased to just 358,474 from 800,000 last week.
The numbers are down miserably, especially if you compare the numbers to an all-time high, which hit 1.1 million per day on January 27, 2022.
Featured image from Saanich News, chart from TradingView.com