• AVAX drops over 10% to $24.86, hitting a six-month low amid market stability.

  • Investigator ZachXBT debunks Luna Foundation sell-off rumors, pointing to $54.2M AVAX transfer to exchanges.

  • Avalanche’s future remains promising with Konami’s NFT platform launch, says Uphold’s Head of Research.

Avalanche’s native token, AVAX, plunged more than 10% in the past 24 hours, defying the broader crypto market’s stability. The sudden drop has sparked speculation and investigations into the factors driving the sell-off, with a prominent crypto investigator suggesting large-scale transfers to exchanges as a potential cause.

As of Friday, AVAX was trading at approximately $28 but has since fallen to a low of $24.86 at press time. This recent crash has erased 38.85% of the value that AVAX gained just a month ago.

This unexpected downturn has prompted market participants to investigate the factors behind the massive sell-off of Avalanche. Some have pointed fingers at the Luna Foundation, claiming the project has begun selling its AVAX holdings.

This view was fueled by the fact that the U.S. regulator recently secured a $4.47 billion settlement with the Terra Luna team. The settlement requires that the project wind down operations and refund investors.

However, widely followed crypto investigator ZachXBT has disputed this narrative, noting that the Luna Foundation has not moved its AVAX tokens since last month. Instead, ZachXBT suggested that the AVAX price crash was likely due to an entity transferring 1.96 million AVAX, worth about $54.2 million, to prominent centralized exchanges like Coinbase, Binance, Gate, and bridging via THORChain.

I think the culprit is likely this address I have been watching who has been moving 1.96M AVAX ($54.2M) and transferring to Coinbase/THORChain 0x327a81d0d128db8886d265be73c9fdda97194f30

— ZachXBT (@zachxbt) June 22, 2024

Market participants are eagerly awaiting a recovery for AVAX from its recent low. Martin Hiesboeck, Head of Research at Uphold Exchange, believes that Avalanche is one of the most undervalued projects among the foremost blockchain networks.

Hiesboeck shared this sentiment following the news of gaming giant Konami announcing plans to launch an NFT platform called Resella on Avalanche.

The post Crypto Drama: Avalanche’s AVAX in Freefall, Sparking Investigation appeared first on Coin Edition.