Avalanche (AVAX), dubbed the “Ethereum killer,” has plunged to more than 16% following the disastrous crypto market scenario. Others crypto tokens, which compete with Ethereum, have suffered double-digit losses over the last 24 hour.
AVAX was the number one choice for 13ThThe largest cryptocurrency, with a market capital of $7.6billion, has seen a dramatic drop in its TVL over the last few hours and now trades at $27.94
AVAX Trampling The Bearish Path
AVAX has led the bearish action. The token is now down by 80% in comparison to the all-time high which was $146.22 at November 2021.
This downward trend can be attributed to the slow growth of various DeFi projects that are based on Avalanche.
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Avalanche – Ethereum Rival
Ethereum was slow to market and costly, leading to Avalance’s creation, which is affordable, eco-friendly and fast.
Avalance was created by Ava Labs, co-founded by Kevin Sekniqi, Emin Gün Sirer, and Maofan “Ted” Yin.
Avalanche is the Ethereum-killer. It combines the lightning speed of confirmations with scaling capabilities through the Avalanche Consensus Protocol. This protocol can process more than 4,500 transactions per minute (TPS).
Source: TradingView.com| Source: TradingView.com
Avalanche launched its website in September 2020. It is now one of the largest and most respected blockchain companies. Avalance has now a TVL worth $11 billion. This makes it the fourth largest DeFI-based Blockchain, after Terra Smart Chain and Binance Smart Chain.
Avalanche has taken some protocol from Ethereum and you can use them in their DeFi ecosystem. These include SushiSwap (decentralized exchange protocol) and Aave (lending protocol).
DeFi Projects TVL down by 8.57%
At $4.74 trillion, the TVL of DeFi protocols is down by 8.57% over the past 24 hours. It is a relatively small amount compared with its record-breaking TVL of $13.7 billion, on December 2, 2021.
AVAX’s 7.5% drop was significant.
TraderJoe plunged to 12.84 %, which is the lowest user base for the decentralized exchange Avalanche. The liquidity fell from $982 million down to $577 millions in a mere month.
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The total number of active wallets discovered on Avalanche increased to more than 2.8million yesterday. This is the highest level ever. The token was still bearish despite an increase in active wallets.
Avalanche transactions totals have dropped further to just 358.474, down from 800,000.
It is difficult to believe that the numbers have fallen so drastically compared with their previous record high of 1.11 million people per day in January 2022.
Featured image by Saanich News. Chart from TradingView.com