The volatility associated with the crypto market has concerned regulatory bodies and authorities globally, and the month of May attracted the attention of lawmakers following the LUNA crisis. Such developments dent the cryptocurrency space.
Avalanche Hurting People
The market crashing twice over the past week had every digital coin feeling the heat, with most assets losing over 20% of their value. Avalanche is among such tokens, with AVAX dropping 28.77% in four days.
However, the past 24 hours had the altcoin on massive recoveries. While publishing this content, AVAX stood at $26.74, following a more than 10% surge within the past day. However, that might not mean decisive recoveries by Avalanche.
AVAX has recorded downtrends for about seven months following its all-time high in November. Meanwhile, the decline phase had the token losing nearly 82%, following broad market bearishness. However, that isn’t the only thing Avalanche lost within the past month, with its network losing users consistently.
Avalanche exhibited between 750K and 800K monthly users up until January. However, the following mark had the number losing approximately 120K, and the network has around 600K users transacting this month.
Also read:Besides the user decline, Avalanche recorded 31.19M transactions over the past month. Meanwhile, May experienced a brief drop, and the figure hovered around 30 million transactions at this publication. Nevertheless, that doesn’t indicate a substantial drawdown since such changes can happen within chains housing more than 600K investors.
Avalanche has not shown immunity to the decentralized finance (DeFi) either, with the network’s protocols losing their value since Dec. 2021. Avalanche boasted nearly 13.7 billion in total value locked back then, while the figures stand at $4.16 billion today.
Though the broad market crash contributed to the declines, faded investments in the chain’s 210 protocols amplified the downsides. For now, Avalanche will likely take time to recover from the lows. Hopefully, investor activity will remain steady until then.
The crypto market opened the week with impressive upswings as Bitcoin gained more than 4.60% to $30,392. It might be interesting to see whether assets can hold the gains throughout the week. Stay tuned.
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