Avalanche (AVAX) and Litecoin (LTC)

Despite the recent rally of the crypto market, the suffering for AVAX (Avalanche) and LTC (Litecoin) still seems to continue. 

Let’s discover the main causes by analyzing the prices of the two cryptocurrencies.

Analysis of the price of crypto Avalanche (AVAX) and Litecoin (LTC)

AVAX is the native cryptocurrency of the crypto ecosystem Avalanche.

It debuted on the crypto market in 2020, and in 2021 it recorded its all-time high price at 146$.

However, the subsequent bear-market for AVAX was tremendous, so much so that by June 2022 it had already fallen well below $20, and even in 2023 it ended up dropping even below $10, returning not far from pre-bubble levels.

It should be remembered that Avalanche boomed in 2021 mainly thanks to DeFi, reaching over 11 billion dollars in TVL. However, during the bear-market of 2022, even DeFi went through a long period of severe crisis, and the TVL of Avalanche ended up collapsing to 500 million dollars in 2023.

The problem is that over the years strong competitors to Avalanche have emerged in DeFi (in particular Hyperliquid, Solana and SUI), so much so that its TVL has risen to just under 2 billion. Avalanche is currently remaining in the top 10 chains with the highest TVL in DeFi, but it has slipped to the tenth position. In 2021, it was absolutely one of the dominant chains in DeFi, after Ethereum and BNB.

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The suffering of AVAX

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With the Trump-trade of November 2024, the price of Avalanche crypto managed to climb back to just over $50, which is very far from the all-time highs of 2021, and even below the peak of the early months of 2024, which reached above $55.

In particular, this second thing sounds really bad, probably certifying the fact that the project is suffering a lot due to the competition. 

During 2025, it even fell below $20, well below the $22 of October from which the mini-bubble at the end of 2024 had started. 

So the situation seems to be one of deep suffering, certified by the current -82% from the all-time highs of four years ago. 

This does not change the fact that in the case of an altseason, the price could rise significantly, but a boom like that of 2021 seems very unlikely. Furthermore, even in the case of an altseason, it might be difficult for AVAX to approach its all-time highs again. 

The trend of the price of the crypto Litecoin (LTC)

LTC is the native cryptocurrency of Litecoin.

It is absolutely one of the oldest cryptos, after Bitcoin, so much so that it has already gone through at least three major speculative bubbles (2013, 2017, and 2021).

The problem is that over time the project has lost appeal, also because it has been widely surpassed by competing projects without ever being able to reinvent itself. 

The real price boom actually happened in 2017, when in just one year it managed to go from less than $4 to more than $300, but during the subsequent bear-market it fell back below $30. 

During the last major bullrun, it barely managed to update the all-time highs, rising to $412, only to plummet back to $50 the following year. 

Before the Trump-trande at the end of 2024, its price was still just slightly above $60, and the end-of-year peak was reached below $140. 

Currently, it is still at -73% from the all-time highs, after a correction that ended below $70 and a climb above $110.

The difficulties for LTC

LTC was born as “digital silver” in contrast to Bitcoin as “digital gold”. 

In other terms, when it was understood that Bitcoin was mainly meant to be held, rather than spent, a new cryptocurrency was invented to be spent. 

However, Litecoin, like Bitcoin, has a deflationary nature, therefore in the end it was not used as a means of payment, but only in particular to transfer funds from one exchange to another more quickly compared to BTC. 

When a few years later the stablecoin arrived, practically everyone stopped using LTC for transferring funds, preferring the stablecoin. 

In this way, Litecoin has become less and less useful, and the project has never really managed to reinvent itself to offer something else of interest to the market. 

All this is at the root of the suffering of the LTC price in the long term, which has characterized its trend for several years now.