Avalanche and other digital tokens have been attempting to recover following the Terra crisis. Its price performance and network activity deteriorated as Fed Reserve ensured elevated interest rates.
Avalanche remained active in enhancing user experience regardless of these bearish challenges. Surprisingly, crypto analytics firm Messari published the Stated of Avalanche data. The report highlighted the altcoin’s performance during the 2022 Q2.
Messari report shows most network activities reversed during Q3 following the massive bearish movements. That saw Avalanche suffering a pessimistic decline in network usage compared to last quarter.
Meanwhile, the 24hr transactions dropped to 540K from 865K in the second quarter. Analysts attribute the swift drop to transferring of GameFi undertaking to subnets.
A revenue surge would accompany surges in Fully Diluted Valuation (FDV) in the first quarter and second quarter. The report indicates that the spread by the two variables constricted during Q2 regardless of occasional daily revenue upticks. Remember, tightening spreads makes the network usage highly correlated to market value.
That sends us to subnets again and the query whether that improves the platform. Well, subnets have affected transaction fees and transaction count for the network. That saw Avalanche revenue dipping, adding to the Q2 woes.
The report shows the total value locked in USD dropped. But AVAX in decentralized finance increased. Remember, the second quarter started with 115M AVAX and concluded with 152M Avalanche locked in DeFi. That means the TVL drop as per USD comes from the declining AVAX price and not utilization.
AVAX at the Moment
Whale accumulation increased regardless of the massive downturn Avalanche saw in recent months. Avalanche was among the top ten assets the 100 leading BSC whales held on July 11 (WhaleStats data).
AVAX price actions have mimicked the broad market outlook. The alternative token suffered from the weekend losses. While writing these lines, the altcoin changed hands at $17.44, losing more than 4% over the past day.
AVAX locked gains within the past seven days, regardless of the bearish tendencies. However, the alt seems ready for further dips before steadying.
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