Despite AVAX bullish on TVL, Avalanche investors have every reason to be concerned

Avalanche [AXAV] It recently entered the list of top cryptocurrencies in terms of total value locked (TVL). The network took third place behind BNB and Tron [TRX].

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Here is the AMB Cryptocurrency price prediction for Avalanche [AVAX] 2023-2024

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Surprisingly, despite being on the list, DeFiLlama’s data shows AVAX’s TVL has been falling for weeks. Also, at press time, the figure was $1.35 billion. AVAX Daily, a Twitter handle that posts updates about the Avalanche ecosystem, also mentioned the episode in its tweet. The network mentioned that although the decline was not strong, AVAX’s TVL continued to bottom out.

Additionally, in the latest issue of the AVAX Weekly Summary, it was revealed that over 13.9 billion transactions took place on the Avalanche blockchain in the past seven days. The tweet also mentions that Avalanche has a total stake of over 263.2 million AVAX.

Bull market effect?

Like most other cryptocurrencies, AVAX has kept investors happy by registering weekly gains of over 18%. However, with AVAX’s sub-par 24-hour performance, things seem to have changed a bit.

At press time, AVAX is trading at $18.68 with a market cap of $5,573,521,344. Interestingly, looking at AVAX’s metrics provides a clear picture of the situation, as they hint at what’s actually happening.

Investors beware

AVAX has recently failed to gain interest from the derivatives market as both its Binance and FTX funding rates have fallen over the past few days.

Source: Santiment

Not only that, but AVAX’s social dominance has also declined after surging on Oct. 27, indicating the token’s low popularity among the crypto community. Additionally, data from CryptoQuant shows that AVAX’s Relative Strength Index (RSI) is in overbought positions. This could further increase the chances of a trend reversal.

However, the only thing in AVAX’s favor is its development activities. AVAX has seen an uptick in development activity over the past few days. This is a good sign as it shows that developers are working harder to improve the network.

Source: Santiment

Source of information: Compiled from AMBCRYPTO by 0x Information.The copyright belongs to the author and may not be reproduced without permission

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