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Avalanche Stuck in Bear Trap: 99.5% of AVAX Investors Are Holding Tokens at Loss

Summary:
The brutal bear market in crypto has significantly affected the price of AVAX. The latest downturn not just extended its weekly losses beyond 17% but also pushed the crypto asset to a multi-year low of .14. As a result, the number of AVAX holders in profit has reached an all-time low. Nearly 99.5% of the investors who own Avalanche’s native token are currently at a loss. According to IntoTheBlock’s latest findings, this isn’t the first time the asset has witnessed similar levels. Previous lows were recorded in June following the dual implosion of Terra’s UST and LUNA, followed by December, a month after FTX’s bankruptcy. However, ITB revealed that it is the first time that nearly all AVAX holders are holding at a loss. The AVAX ecosystem had several crucial developments

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The brutal bear market in crypto has significantly affected the price of AVAX. The latest downturn not just extended its weekly losses beyond 17% but also pushed the crypto asset to a multi-year low of $10.14.

As a result, the number of AVAX holders in profit has reached an all-time low. Nearly 99.5% of the investors who own Avalanche’s native token are currently at a loss. According to IntoTheBlock’s latest findings, this isn’t the first time the asset has witnessed similar levels.

  • Previous lows were recorded in June following the dual implosion of Terra’s UST and LUNA, followed by December, a month after FTX’s bankruptcy.
  • However, ITB revealed that it is the first time that nearly all AVAX holders are holding at a loss.
  • The AVAX ecosystem had several crucial developments this year. This includes Alibaba Cloud – a subset of Chinese e-commerce conglomerate Alibaba – joining forces with Avalanche for a launchpad to deploy metaverses on the layer 1 blockchain.
  • Avalanche, along with other crypto players, teamed up with MasterCard, a collaboration that was aimed at helping the payments giant strengthen its foothold in the Web3 space.
  • More recently, the Avalanche Foundation unveiled a $50 million initiative – Avalanche Vista – to invest in real-world asset (RWA) tokenization.
  • It was also found that the brief depeg of USDC stablecoin in the first quarter of 2023 triggered a surge in transactions and active users on Avalanche. However, the ecosystem developments had a negligible impact on the price side of things.
  • In fact, AVAX is currently under significant pressure, and the upcoming token unlock worth approximately $99 million, which is slated to be released on August 26th, is further expected to increase the selling pressure.

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