Avalanche (AVAX) has had a terrible Q2 2024 by several standards, going by a significant decline in market capitalization coupled with low revenue generation.
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Messari’s recent report indicated that AVAX faced a fierce correction after two quarters of growth on the trot. Market capitalization dipped by 40% within the last quarter to stand at $11.6 billion. Well, despite this slump, the ecosystem is still sound as AVAX still has a market cap of $4.5 billion — that’s a 157% surge compared to the same period in 2023.
State of @avax Q2
Key Update: Several partnerships announced, notable ones include @stripe, @homium, and @konami.
QoQ Metrics 📊
– Staked AVAX ⬆️ 6%
– DeFi TVL (AVAX) ⬆️ 11%
– Stables ⬆️ 13%Read the full report 🔗https://t.co/7xsKIj1ml3 pic.twitter.com/0dSZnfXOVE
— Messari (@MessariCrypto) September 13, 2024
Price Forecast Shines Through The Dip
The slump is paining the larger ecosystem, but the future of AVAX seems brighter. In fact, the price forecast of the token will shine hope for investors. AVAX is seen going up 70.68% over the next three months, showing a bounce from the recent prices, analysis from CoinCheckup shows.
This bullish sentiment is bolstered by long-term projections that suggest a 166% growth over the next year. It seems AVAX is poised for recovery, making it an intriguing asset for traders keeping an eye on the market.
Revenue Plunge And On-Chain Activity
Revenue for the Avalanche ecosystem was another source of worry, as its value went down from 176,700 AVAX in Q2 2024 to 96,200 AVAX during the same period. In dollar terms, that translated into $7.5 million going down to $3.5 million.
Pullback is due to slowed activity across different on-chain platforms. However, some analysts believe that a renewed interest in on-chain-based transactions could help revive revenue growth in the short term.
Despite these drops, staking remains robust within the Avalanche ecosystem. There is a 6% increase in the number of staked AVAX tokens due to new measures to boost staking. Staking rewards continue to attract new investors despite a fall in active validator count by 7%. This reflects some unease among validators amidst these market conditions.
Network Stability
Average transaction counts remain mixed. With approximately 11,262 transactions…
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