Avalanche noted several significant developments, which encouraged AVAX as it increased the value of the network. Before the end of 2022, the network announced that it has partnered with Dua.com, SocialFi that chose Avalanche to develop “Fi”.
The Avalanche ecosystem also grew until 2023, as the total number of trades and the number of NFT trades in US dollars increased. AVAX engineers also announced the release of Banff 5, the final version of the AvalancheGo software, on December 22.
According to Avalanche, it debuts Avalanche Warp Messaging (AWM) with Banff 5, allowing network-based blockchains to communicate with each other.
SocialFi https://t.co/EQ2K6P3vZv Chose Avalanche To Build “Fi”
SocialFi is a trend that has recently emerged when important projects appear. @duadotcom it is a name that cannot be ignored & recently, the official homepage announced the cooperation with #Alongsor.
Details 👇 pic.twitter.com/STB82o1zQp
— Avaxholic 🔺 (@avaxholic) December 30, 2022
Although some of AVAX’s statistics look promising, market indicators warn that the company’s performance may not meet investors’ expectations.
AVAX is trading at $10.69 with a market value of nearly $3.3 billion at the time of writing, according to CoinMarketCap data. The price of AVAX has fallen by more than 10% in the past seven days.
In addition, the AVAX Cash Flow Index is on the decline, which is bearish. AVAX balance volume has been unchanged since the start of the recent bear market, indicating a lack of major accumulation momentum.
Chart: Santiment
Chaikin Money Flow (CMF) is also down with MFI. The Exponential Moving Average (EMA) band indicates a bearish market advantage, which can prevent the price of AVAX from climbing.
AVAX has lost 90% of its value from its peak this year. Cryptocurrencies periodically experience good traction, but often hit new lows.
Although the price drop may be related to the difficulties of the general cryptocurrency market, AVAX has not been able to recover with the market.
The Avalanche Network is a blockchain that enables smart contracts and provides fast and cheap transactions. However, AVAX has encountered many problems, making it a challenge for the cryptocurrency to continue to rise.
AVAX total market cap at $3.4 billion on the daily chart | Chart: TradingView.com
More Loss In Offing?
The DEX on the Avalanche network, known as Defrost Finance, was compromised by hackers last week, which may have caused the network’s reputation to suffer.
According to data provided by PeckShield Inc., a company that provides crypto security analytics, attackers can earn $12 million.
This attack on the DeFi ecosystem may have an impact on the total TVL collected by the network. Over the past month, AVAX TVL fell from $903.03 million to $787.03 million, according to DefiLlama.
Meanwhile, the daily chart suggests that AVAX investors may have to suffer additional losses in 2023, leaving little value for holders as the 2022 trading year comes to an end.