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Avalanche (AVAX) Profitability Hits 99% Low, Possible Remedies

Wed, 08/23/2023 - 15:30
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Godfrey Benjamin
Avalanche has plunged to its lowest level with 99% of addresses in loss
Avalanche (AVAX) Profitability Hits 99% Low, Possible Remedies
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Avalanche (AVAX) is experiencing one of its lowest periods in history as many of its holders are recording massive losses, according to on-chain data from crypto analytics platform IntoTheBlock (ITB).

Avalanche plunge

Avalanche (AVAX) up 8% as Its Latest Innovations Got Unpacked: Details

Avalanche was once a prominent digital asset that was a very close rival to Terra (LUNA) prior to the latter's implosion. Avalanche recorded a huge market embrace that pushed its price to a high of $146.22 back in November 2021. Unfortunately, from the current trend, it appears as though the majority of long-term HODLers bought the coin when it hit its all-time high (ATH).

Data from ITB shows that as many as 99% of addresses resident on the Avalanche network are in losses. This percentage accounts for a total of 5.46 million of the total addresses holding AVAX. The data highlights addresses in profit to be pegged at just 160, while those that are making neither profits nor losses, per ITB, are pegged at a massive 27,640 addresses.

Avalanche Profitability Chart
AVAX Addresses in Profit. Source: IntoTheBlock

For a project as enormous as Avalanche, these data are damning and might notably discourage investors looking to back the blockchain in the near term. The sheer luster being exhibited by Avalanche is based on its current price outlook, which has surged by a marginal 0.98% to $10.22, a price point that is 93% below its ATH.

Despite these losses, Avalanche is still maintaining its stance as the 20th most capitalized coin, an indication that investor sentiment toward it is still robust.

Avalanche (AVAX) Buyers Are Mostly Bullish on Coin, Here's Reason

Changing paradigm

Judging by the top protocols in the Web3.0 ecosystem today, Avalanche will need to pivot its technology to embrace more of the trending innovations, like doubling down on its EVM compatibility the way Filecoin did. Additionally, Avalanche may need to explore scaling solutions like Ethereum, while generally presenting itself as an attractive chain for meme coins, NFTs and enterprise adoption across the board.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.