AVAX down 30% in 30 days – These are the reasons

• AVAX’s price has declined by 30% in the past 30 days.
• This has been due to low user activity on the Avalanche C-Chain network.

Avalanche [AVAX] has witnessed a 30% decline in its value in the last month, according to data from CoinMarketCap. 

Source: CoinMarketCap

An on-chain assessment of the proof-of-stake- blockchain network revealed that the decline in AVAX’s value was due to the decline in user activity on its C-Chain. 

Although Avalanche is made up of the P, X, and C-Chains, the C-Chain is considered to be the most important chain in the network because it is the one that allows users to create and interact with decentralized applications (dApps).

Avalanche C-Chain sees a decline

Data from Artemis showed that Avalanche C-Chain has witnessed a significant decline in demand in the last month.

For example, the daily count of unique wallet addresses sending on-chain transactions on the chain has plunged by over 45% in the last 30 days.

Due to the drop in its number of users, the count of transactions recorded on the C-Chain in the last month has plummeted.

With only 266,820 transactions completed on the network during that period, it has seen a 95% drop in daily transaction count. 

A natural consequence of low user activity on a network is a corresponding decrease in fees recorded.

AMBCrypto found that during the period under review, fees paid to complete transactions on Avalanche C-Chain have totaled $39,000, dropping by 97%.

For context, on the 22nd of December 2023, the chain recorded transaction fees totaling $1.25 million. As of the 19th of January 2024, it closed the day with a total of $39,000 recorded in fees.

Revenue derived from these fees has suffered a similar decline. In the last month, this has also dwindled by over 95%. 

Source: Artemis

How much are 1,10,100 AVAXs worth today?

Regarding the network’s decentralized finance (DeFi) vertical, the low user count has led to a 16% dip in its total value locked (TVL).

Also, the total volume of transactions completed through the decentralized exchanges (DEXes) housed on the blockchain network has fallen by 53% in the last month.