fbpx
12 C
London
Saturday, July 2, 2022

AVAX Prices Drop by 45%

AVAX is testing support at $14.80 and the network’s DApp use is underperforming its competitors, suggesting that the easiest path forward is down.

AVAX is down by 45% in a month and its market capitalization has shrunk by a further 29%.

- Advertisement -

Despite the recent downturn, this decentralized application (DApp) platform remains a top contender in the layer1 and layer2 race and it ranks high in terms of smart contract deposits and active addresses. Yet, the lackluster token price is still causing investors to rethink whether the network remains a “serious” competitor.

AVAX Had To Test The Support Multiple Times

The brutal sell-off on risk assets caused AVAX to test the $14.80 support multiple times, while the current market capitalization stands at $4.8 billion. It’s important to also note that the network’s total value locked (TVL) holds an impressive $3.2 billion.

As a comparison, Solana (SOL) offers incredibly low network fees and holds a $2.1 billion TVL. Yet, SOL token’s market cap stands at $12.9 billion, which is almost 3 times larger than Avalanche’s valuation at the $14.8 price level.

- Advertisement -

The TVL indicator is extremely relevant because it measures the deposits on the network’s smart contracts. If we use Polygon (MATIC), an Ethereum layer-2 solution, as a proxy, the network holds a $1.8 billion TVL while the token’s market capitalization stands at $3.5 billion.

In short, Avalanche looks heavily discounted considering how similar networks’ market capitalization vastly exceed their respective TVL.

- Advertisement -

Follow Us

16,985FansLike
4,865FollowersFollow
1,643FollowersFollow

Latest news