AVAX’s frightening depreciation makes investors think
SHIB, Ethereum, AVAX and many cryptocurrencies continue to lose value rapidly. The year 2022 is progressing like a nightmare for crypto money investors. In particular, the decline in Avax’s value was enough to scare many investors.
Over the past day, many altcoins have seen declines, especially the leading altcoin Ethereum (ETH). The Ethereum price collapse deepened as ETH slipped below $1,800.
Bitcoin is limited, Ethereum is down hard, then Avax’s depreciation has investors thinking. While everyone was scared after Luna’s huge depreciation, now concerns about Avax continue to rise.
Ethereum,Avax AND Others
Bitcoin slumped below $29,000 while Ethereum lost 10 percent daily. AVAX, on the other hand, continued its decline with a loss of 15%.
Bitcoin has tended to show a parallel movement with the US stock markets, especially the Nasdaq, in recent months. However, this week saw the Nasdaq and cryptocurrencies move in different directions.
Yesterday, the Nasdaq Composite index rose 2.86 percent, while Bitcoin fell below $29,000. The world’s most popular cryptocurrency fell to $28,800 with a daily depreciation of 2.9 percent as of this morning. This decline was a limited decline compared to other cryptocurrencies.
Ethereum dropped 10 percent to $1,734. Binance Coin lost 7.5%, Ripple 2% and Cardano (ADA) 10.1% daily losses.
At the time of writing, ETH is on the agenda with a decrease of 8.52 percent. The aforementioned decline appears to have arisen due to concerns over the stability of ETH’s upcoming “merge” (Ethereum 2.0) update. On the other hand, the gas fee on the ETH network dropped to $2.54 earlier this week. According to Santiment, the on-chain data platform, the low fees for ETH are due to low network activity, stagnation and fear.
AVAX at 9-Month Low
Avalanche (AVAX), one of the cryptocurrencies most affected by the collapse of LUNA and TerraUSD (UST), which started on May 9, continues to lose blood, as it is among the reserve currencies of the Luna Foundation and Terraform Labs.
As of this morning, AVAX fell 16 percent daily to $ 21.90. AVAX thus saw its lowest level since August 2021. AVAX hit its historic high in November 2021, surpassing $146. Before the crisis that broke out on May 9, it was above $50.
So far, no statement has been made that they are selling AVAX from the Luna Foundation or Terraform Labs. However, millions of AVAX investors in the hands of these institutions are worrying.
Analysts stated that after the crisis 2 weeks ago, there was a loss of confidence, although not permanent, in the crypto money market, so the decline in Bitcoin, the most known and trusted cryptocurrency, was more limited than other cryptocurrencies.