Why Has Avalanche’s (AVAX) Price Tanked to a Six-Month Low?

The Avalanche blockchain's native token AVAX is in severe pain this weekend, falling more than 10% at one point in a decline to its lowest level since December 2023.

Over the past 24 hours, the token fell from $27.87 to an intraday and six-month low of $24.92, according to CoinGecko.

Furthermore, the asset has fallen a whopping 37% over the past month as the altcoin crush continues the crypto market decline.

What caused the collapse of AVAX?

“What's going on over there?” Requested “Crypto Mechanic” in a post on X on June 22, before adding that it is “the first high-cap coin to break the (annual) bottom, I think.”

“The hype for AVAX has died down so far this cycle… and it looks like nothing will save it from becoming Cardano 2.0.” Comment “The Crypto Monk.”

Meanwhile, Uphold's head of research, Dr Martin Hesbock, said: “An AVAX price falling like an avalanche doesn't make any sense.”

“There's no one like it that has this growth momentum,” he said, referring to avalanche sizes. Additionally, major game developer Konami is said to be launching an NFT platform called Resella, built on the Avalanche blockchain.

This is huge. price $avax A descent like an avalanche has no meaning. Avalanche's total volume is more than $18 billion since the beginning of the year. No one else has this growth momentum. And now one of Avalanche's major game developers has to be the most underrated… https://t.co/jNqrKsovHC

– Dr. Martin Hesboeck (MHiesboeck) June 22, 2024

According to blockchain investigator ZachXBT, the whale transferred large amounts of assets to centralized exchanges. He said in investigations that the entity began transferring 1.96 million AVAX worth about $54.2 million to Coinbase, Binance, Gate and Bridge via THORChain. mail On Telegram on June 22.

The massive move has seen AVAX's market capitalization fall below $10 billion and its ranking drop to 14th place, below Shiba Inu (SHIB) and Tron (TRX), according to CoinGecko.

Avalanche has been the center of crypto hype this year regarding its real-world asset (RWA) tokenization narrative and several major partnerships.

The asset reached $60 in the mid-March market high, but is still down 83% from its November 2021 all-time high of $145.

Other altcoins are in pain

Altcoins continue to bleed as crypto markets continue to correct. Total capitalization is down 15% from its 2024 high, and is currently 20% below its 2021 all-time high.

Altcoins are bearing the brunt of this pain at the moment, with Cardano (ADA), Chainlink (LINK), Near Protocol (NEAR), Polygon (MATIC), and Fetch.ai (FET) falling deeper into the red this weekend.