The recent bear market in the cryptocurrency industry has taken a toll on AVAX, the native token of Avalanche. With a weekly loss of over 17%, AVAX has hit a multi-year low of $10.14. As a result, an alarming 99.5% of AVAX investors are currently holding their tokens at a loss, marking an all-time low for the asset.
This isn’t the first time AVAX has experienced such levels of investor losses. Similar lows were observed in June after Terra’s UST and LUNA faced a dual implosion, followed by FTX’s bankruptcy in December. However, this time, it’s unprecedented that almost all AVAX holders find themselves in a loss-making position.
Despite several significant developments within the AVAX ecosystem this year, including partnerships with Alibaba Cloud and MasterCard, the price of AVAX has been under substantial pressure. Even the recent $50 million investment initiative, Avalanche Vista, aimed at real-world asset tokenization, has had little impact on the token’s price.
Adding to the selling pressure is the upcoming token unlock scheduled for August 26th, which is expected to release approximately $99 million worth of AVAX into the market. This event is likely to further intensify the selling pressure on AVAX.
Investors in AVAX are eagerly waiting for a turnaround in the market to recover their losses. However, with the current bear trap situation, it remains to be seen when AVAX will regain its value and provide relief to its investors.
Disclaimer: This news piece is not intended as financial advice. Cryptocurrency investments are subject to market risks, and readers should do their own research before making any investment decisions.
(Note: This content is a fictional creation and does not represent real news or information.)