Avalanche's (CRYPTO:AVAX) native cryptocurrency AVAX has sharply declined, dropping more than 10% to its lowest point since December 2023.
The token fell from $27.87 to $24.92 within 24 hours, reflecting a significant 37% decrease over the past month amidst ongoing volatility in the broader cryptocurrency market.
Community speculation and analyst commentary point to fatigue in market sentiment and significant movements of AVAX tokens to centralised exchanges as contributing factors to the decline.
Dr. Martin Hiesboeck from Uphold highlighted the unexpected nature of AVAX's current downturn compared to its earlier growth trajectory.
Blockchain analysts identified a large transfer of 1.96 million AVAX tokens worth approximately $54.2 million to platforms like Coinbase and Binance, resulting in AVAX's market capitalisation dropping below $10 billion and its ranking slipping to fourteenth place in the cryptocurrency rankings.
Despite initial optimism surrounding AVAX due to its initiatives in real-world asset tokenisation and partnerships, the recent market correction has exposed vulnerabilities and heightened volatility among altcoins like AVAX.