- AVAX is currently working on technical aspects of the ecosystem.
- The ecosystem has lost more than 90% TVL this year.
- Avalanche (AVAX) was trading at a market price of $13.47.
Technical improvements May Help The Network
Avalanche (AVAX) took to Twitter that they are involved in some technical advancements on their ecosystem for the validators. It will launch the Banff 4 technology for bandwidth enhancement for the persisting validators. This year has shown some of the worst calamitic scenarios that the crypto industry has ever witnessed.
Banff 4 adds bandwidth optimizations for existing validators and enables custom VMs to store data on disk, as well as setting the stage for exciting new features slated for Banff 5. https://t.co/00wnUB7wT7
— Avalanche
But the technological advancements are not helpful in keeping the stakers onboard as they have declined by over 29% in a month. There were 44,329 stakers on the ecosystem at the publication time. This is not it, Avalanche experienced a hard blow in the DeFi sector too.
According to DeFi Llama, AVAX had a Total Value Locked (TVL) at $857 Million at the time of writing. We can see how the ecosystem operated flawlessly during the first quarter this year. But it plunged sharply from around $9 Billion to what we are witnessing now. This translates into over 90% decline since Q1 2022.
Recently, Avalanche announced their collaboration with the Alibaba Cloud to provide a validator facility, Node-as-a-Service, on the ecosystem. With this, the organization is planning to introduce the MNC giant as a part of their co-operative efforts. This will put Avalanche in charge of blockchain node’s technical aspects while guaranteeing the security.
Avalanche (AVAX) Price Analysis
Crypto winter has created a lot of bloodbath in the market which is crystal through the chart. AVAX has lost around 90% in its value since April 2022. The asset traded at the yearly high of $104 during April 2022. It then followed a steep decline where it hit the bottom to around $14 in June 2022. Reason for the plunge remains fleeing investors during May 2022.
The first regression trend shows a huge amount of sellers causing a plunge during May 2022. As AVAX started showing potential it was met with smaller daily sell offs in the mid-August to end the uptrend. The latter shows a similar trend as the price has entered the active sellers zone again. Currently, the asset was trading at $13.47, less than 1% decline in the past 24 hours.
AVAX is a third generation cryptocurrency and is considered one of the Ethereum killers alongside Cardano, Solana, Tezos and more. But the year has proven to be a hard struggle for almost all the virtual currencies in the sector. Finally, when the fog appeared settling in the market, FTX happened. And the cold winds seem to gain a positive momentum instead.
Cryptosphere had a market cap at $857 Billion at the publication time with Bitcoin and Ethereum collectively shedding 56.8% dominance over the market.
Source: https://www.thecoinrepublic.com/2022/12/11/avax-price-analysis-can-the-technical-enhancements-revive-the-network/