Very popular among cryptocurrency-themed channels. Coin Bureaushared his views on Avalanche (AVAX) as a ‘bear market’ continues, which he believes could last for two more years.
The presenter of the channel, an analyst with the pseudonym Guy, stated in the latest video that Avalanche is still in good shape despite the huge selling pressure and the negative atmosphere in the markets.
“In addition to all the negative macro factors experienced, AvalancheIn line with ‘s aggressive vesting plan, 25 million AVAX entered circulation earlier this year. Assuming the average price of AVAX is currently $50, this means that AVAX has had $1.25 billion in selling pressure in the last few months alone. I’m also sure there’s other significant selling pressure, and that’s because there hasn’t been a shortage of news from Avalanche over the past year on issues like acquisitions and investments.
We have to remember that the Avalanche network currently has a DeFi incentive program with $180 million worth of AVAX, and most recently the $290 million ‘multiverse’ incentive program was probably funded with these AVAXs. All these factors trigger a huge selling pressure.
Because, AVAXIt’s surprising to see .
To put things in perspective, the number of unique wallets on Avalanche’s C-chain has increased by 50% in just the last four months, and the number of daily transactions on the C-chain has been on a strong upward trend until very recently.”
Although Avalanche has remained ‘relatively’ successful in the face of all developments, according to the analyst, it may lose more than half of its current value in the ‘crypto winter’.
“The fact that AVAX is not required to pay transaction fees on Avalanche subnets may adversely affect future price action as it will reduce demand for AVAX. AVAX request from subnet validators should suffice, as each must receive 2,000 AVAX. The funny thing is that this layout makes Avalanche’s economic architecture eerily similar to that of Polkadot and Cosmos…
It seems quite possible for AVAX to drop as low as $10 in this bear market, but with some luck we may see it regain the strong support level around $40.”
AVAX was trading at $24.44 at the time of writing. You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.