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<\/p>\n
- \n
- Almost 100% of\u00a0 AVAX holders plunged into losses.<\/em><\/li>\n
- While volatility remains high, traders continue to overlook AVAX contracts.<\/em><\/li>\n<\/ul>\n
\u201cThey say this is a big rich town. I just come from the poorest parts.\u201d These lyrics coined from 50 Cents\u2019 Big Rich Town perfectly matches the state of <\/span>Avalanche [AVAX]<\/span><\/a> whose holders have had to deal with losses for a long period.\u00a0<\/span><\/p>\n
Compared to the other cryptocurrencies in the top 20 per market cap, AVAX seemed to be the only one in this state.<\/span><\/p>\n
\nIs your portfolio green? Check the <\/span>Avalanche Profit Calculator<\/span><\/a><\/p>\n
\nAnd while these holders may have hoped for respite, that has not been the case. To make matters worse, IntoTheBlock data showed that 99.5% of AVAX holders were now holding the token at a loss.<\/span><\/p>\n
No result for diamond hands\u00a0<\/b><\/h4>\n
Although holders of AVAX have held the token through thick and thin, this is the first time that almost 100% of the holders would have no profit to show for their loyalty. Undeniably, AVAX\u2019s price performance this year has been largely responsible for the current condition.<\/span><\/p>\n
In the last 90 days, AVAX has lost 25.70% of its value. On a Year-To-Date (YTD) basis, it has not been any better, decreasing by 51.16% in the process. Besides its price action, other parts of the Avalanche ecosystem have been the same\u2014 sometimes, <\/span>worse off<\/span><\/a>.<\/span><\/p>\n
One such case was Avalanche\u2019s Total Value Locked (TVL). Used to measure the total value of digital assets staked or locked in a distributed application, the TVL shows how much trust investors have in a protocol. <\/span>At the time of writing, <\/span>Avalanche\u2019s TVL<\/span><\/a> was down to $536.12 million\u2014 an 18.55% decrease in the last month.<\/span><\/p>\n
![\"Avalanche](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/08\/Screenshot-2023-08-22-at-12.40.34.png\")
<\/a><\/p>\nSource: DefiLlama<\/p>\n<\/div>\n
So, the decline in TVL suggests that Avalance has become a protocol that market participants have <\/span>avoided<\/span><\/a>. Therefore, opening its health to potential risks.<\/span><\/p>\n
Great for development, not the token<\/b><\/h4>\n
But in terms of development activity, Avalanche ensured that upgrades on its network remained active. At the time of writing, AVAX\u2019s development activity had risen to 29.9.\u00a0<\/span><\/p>\n
This increase suggested that the public GitHub repositories linked to Avalance have been impressive. But can this change the <\/span>course<\/span><\/a> of its price action? Well, the two-week price volatility suggested that AVAX\u2019s price could tilt far away from its current value.\u00a0<\/span><\/p>\n
At press time, the price volatility had increased to 0.069. However, the hike also depicts that AVAX\u2019s price could move in either direction. Either the value skyrockets highly or the plunge would be massive.<\/span><\/p>\n
![\"AVAX](\"image\/svg+xml,%3Csvg%20xmlns=\")
![\"AVAX](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/08\/Avalanche-AVAX-13.01.14-22-Aug-2023.png\")
<\/a><\/p>\nSource: Santiment<\/p>\n<\/div>\n
\nRead <\/span>Avalanche\u2019s [AVAX] Price Prediction<\/span><\/a> 2023-2024<\/span><\/p>\n
\nAs a result of AVAX\u2019s underwhelming state, traders have overlooked opening contracts linked with the token.<\/span><\/p>\n
At the time of writing, the <\/span>Open Interest<\/span><\/a> was $76.66 million. Open Interest is the total value of outstanding derivatives contracts for an asset. So, the decrease implies that liquidity flowing into AVAX contacts has decreased.<\/span><\/p>\n
- While volatility remains high, traders continue to overlook AVAX contracts.<\/em><\/li>\n<\/ul>\n
![\"AVAX](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/08\/Screenshot-2023-08-22-at-13.09.21.png\")