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Wednesday, October 5, 2022

AVAX Prices Drop by 45%

As AVAX is currently testing services at $14.80 and the platform’s DApp utilization is underperforming in comparison to its competitors, the cheapest and most straightforward next step is to lower the price.

AVAX’s value has dropped by 45% during the previous month, resulting in a 29% drop in market cap.

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With a large number of smart contracts deposits and operational addresses, this DApp platform is a formidable foe in the battle for layers 1 and 2. Despite the market’s downturn of late. Despite this, buyers are unsure if the network is a “genuine” competitor due to the token price’s performance.

AVAX Had To Test The Support Multiple Times

Following a precipitous fall in the value of hazardous assets, AVAX made many efforts to test the $14.80 resistance level, and the company’s current valuation is currently $4.8 billion, down from a high of $18.8 billion. Keep in mind that the network’s TVL is now at a mind-boggling $3.2 billion.

While Solana (SOL) has a TVL of $2.1 billion, its network fees are incredibly low. The value of Avalanche now at the current price point is $14.8 billion, while the market capitalization of the SOL coin is $12.9 billion.

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The TVL indicator is crucial for understanding the health of the network since it records deposits made on smart contracts. Using the Ethereum layer-2 solution Polygon (MATIC) as a stand-in, we determine that the net has a TVL of $1.8 billion, whereas the token’s market price is now $3.5 billion.

When compared to the market price of similar networks, which well exceeds their relative TVL, it would appear that Avalanche is undervalued.

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