Landslide prices reverse even as DEX and NFT volume pulls back

Avalanche’s ( AVAX/USD ) DEX volume is struggling even as DeFi protocols start a comeback in 2023. These trends point to significant challenges in the ecosystem as it tries to take market share from the likes of Ethereum, BNB Chain, Polygon, and Arbitrum.

Avalanche DEX volume pulls back

Avalanche is one of the best Ethereum killers in the industry. It prides itself on having faster transaction speeds and extremely low fees. After enjoying a remarkable bounce in the first few days, Avalanche’s ecosystem appears to be struggling.

According to DeFi Llama, Avalanche has seen its total value locked (TVL) drop to around $992 million, making it the sixth largest platform in the world. At its peak, it had a TVL of more than $12 billion. In AVAX terms, the network’s TVL has fallen to 49.9 million AVAX, the lowest point since October 2021.

Additional data shows that the volume of coins traded in the Avalanche ecosystem has dropped by 21% in the last 7 days. The network had over 80 million dollars in transactions in the last 24 hours. Ethereum, on the other hand, handled over $2.4 billion in the same period.

On a monthly basis, Avalanche’s volume in January topped $1.75 billion. At its peak, the network handled over $19 billion, as shown below.

A closer look at Avalanche’s top platforms shows that their volumes have dropped. Trader Joe’s, KyberSwap, GMX and Woofi have seen their volumes drop by over 20% in the last 7 days. GMX is notable here considering that the Avalanche network has a TVL of $99 million compared to Arbitrum’s $500 million.

Avalanche NFT volume slipper

DeFi isn’t the only area where Avalanche is lagging behind. According to CryptoSlam, total NFT sales in January came in at just $1.4 million. That was slightly higher than December’s volume of more than $1.4 million. As of January 2022, Avalanche handled over $152 million worth of NFTs.

The number of Avalanche NFT users has also been relatively modest. Unique sellers in January came in at 4,422 while buyers were just 4,822.

Additional data from TokenTerminal shows that the number of Avalanche users has decreased. The number of active users in the network came in at approximately 26,000 on Wednesday. In December, Avalanche had over 42,000 users.

Landslide price prediction

Despite the weak metrics, the AVAX price has been doing well in recent days. It moved back to $20 on Thursday, which was about 88% above its lowest point since January. This upturn occurred as the number of short liquidations increased. It also rose above the 25-day and 50-day moving averages. Therefore, the coin is likely to continue to rise in the coming days.

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