Why did the price of AVAX coin drop to its lowest level in 6 months?
The Avalanche network's digital currency, AVAX, is facing intense selling pressure this week, with its price falling by more than 10% at one point, reaching its lowest level since December 2023.
During the past 24 hours, the value of AVAX fell from $27.87 to its lowest level during the day at $24.92, the lowest price recorded in six months according to “CoinGecko” data.
Significant decline in the value of AVAX:
AVAX has seen a sharp decline of 37% over the past month, reflecting the general trend of decline in the cryptocurrency market that has severely affected altcoins.
This significant decline raised many questions about the reasons behind this rapid decline.
Factors affecting the decline of AVAX:
In a post on X on June 22, a user named “Crypto Mechanic” expressed his surprise, saying:
What's going on there?
It is the first major currency to record a new annual low this year.
Another user named “The Crypto Monk” explained that the hype cycle surrounding AVAX has ended, likening its current situation to that of Cardano in the previous cycle, reflecting pessimism about the future of AVAX.
According to a blockchain researcher known as “ZachXBT,” one of the whales transferred large amounts of the AVAX digital currency to centralized trading platforms such as Coinbase, Binance, and Gate, as well as via bridge platforms via THORChain.
The value of these transfers amounted to approximately $54.2 million, which led to the market value of AVAX falling to less than $10 billion and its ranking falling to 14th place among cryptocurrencies.
It is worth noting that this decline is not limited to the AVAX digital currency alone, but many other alternative digital currencies are also facing similar pressures.
The total value of the cryptocurrency market has declined by 15% from its highest level in 2024, and is now 20% below its all-time high in 2021.
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