Avalanche recorded a number of significant developments, which was encouraging for AVAX since it enhanced the network’s value. Before 2022 came to a close, the network revealed that it had partnered with Dua.com, a SocialFi that had picked Avalanche to develop its “Fi.”
The Avalanche ecosystem also grew in the run-up to 2023, as its total number of trade counts and amount of NFT trades in US dollars increased. AVAX engineers also announced the release of Banff 5, the final version of its AvalancheGo software, on December 22.
According to Avalanche, it debuted Avalanche Warp Messaging (AWM) with Banff 5, allowing its network-based blockchains to communicate with one another.
SocialFi https://t.co/EQ2K6P3vZv Chooses Avalanche To Build Its “Fi”
SocialFi is a trend that has emerged recently when prominent projects appear. @duadotcom is a name that cannot be ignored & recently, its homepage officially announced its cooperation with #Avalanche.
— Avaxholic 🔺 (@avaxholic) December 30, 2022
Although several AVAX statistics appeared promising, market indicators warned that the company’s performance may not meet investors’ expectations.
AVAX was trading at $10.69 with a market value of nearly $3.3 billion at the time of writing, according to CoinMarketCap data. AVAX’s price has declined by more than 10% in the past seven days.
Moreover, the AVAX Money Flow Index had a decline, which was bearish. AVAX’s on-balance volume has been unchanged since the beginning of the new bear market, showing a lack of major accumulation momentum.
The Chaikin Money Flow (CMF) likewise dropped with MFI. The Exponential Moving Average (EMA) Ribbon indicated a bearish market advantage, which could prevent AVAX’s price from climbing.
AVAX has lost 90% of its value from this year’s peak levels. The cryptocurrency periodically experiences great traction, but it frequently reaches new lows.
Although the price drops may be related to the general cryptocurrency market’s continued difficulties, AVAX has not been able to recover with the market.
The Avalanche network is a blockchain that enables smart contracts and provides fast and inexpensive transactions. However, AVAX has encountered numerous issues, making it challenging for the cryptocurrency to continue its upward course.
AVAX total market cap at $3.4 billion on the daily chart | Chart: TradingView.com
More Losses In The Offing?
A DEX on the Avalanche network, known as Defrost Finance, was infiltrated by a hacker last week, potentially causing the network’s reputation to suffer.
According to data provided by PeckShield Inc, a company that provides crypto security analytics, the attacker was able to cart away $12 million.
These attacks on its DeFi ecosystem may have an impact on the total TVL collected by the network. Over the past month, AVAX TVL decreased from $903.03 million to $787.03 million, according to DefiLlama.
Meanwhile, the daily chart indicated that AVAX investors may have to endure additional losses in 2023, delivering little reprieve to its holders as the 2022 trading year draws to a conclusion.