Avalanche has lost more than one-fourth of its value in just the past 7-days. From trading above $30 this time last week, the 15th ranked alt was priced at $23 at press time.
State of Avalanche’s network
Alongside the price damage, the state of affairs on the Avalanche network has also been deteriorating. Avalanche’s ecosystem, as such, is a bit different when compared to that of other networks. AVAX tokens exist on the X Chain and can be traded there, while on the C Chain, they can be used in smart contracts or to pay for gas.
Now, as highlighted below, Avalanche’s C Chain network utilization has literally fallen off the cliff over the last couple of days. The average gas fee used has dropped from around 50% to below 20% in the said timeframe.
In conjunction, the number of daily active addresses on the network has also been declining. Towards the end of February, an average of 100k addresses used to be active on a daily basis. Of late, nonetheless, the number has been revolving in the 60-70k bracket. The same can be evidenced below.
The number of daily transactions registered on the network has parallelly been shrinking. In the initial half of May, the number kept revolving around 800k, but now, it is already down on its knees to 200k.
In fact, the same also coincides with the drop in the average transactions executed per second. Per data from stats.avax.network, until 11 May the TPS revolved around 11. Now, over the last few days, the same has been reflecting single-digit values of between 1-4.
In the past, whenever the network has been performed well, the price of Avalanche’s native token has got a cushion to lean on. But now with the state of the network in dire straits, it doesn’t seem like AVAX would recover any time soon.