Why Avalanche’s remarkable NFT performance may not matter for AVAX
Avalanche [AVAX]just like Cardano and Solana, experienced steady growth along with an increased interest in the NFT market. According to a tweet posted by the research firm Messari November 5, Avalanche‘s NFTs did well in Q3.
.@avalancheavax NFT Summer Q3?
NFT sales picked up at the beginning of the 3rd quarter.
Average daily sales were $25,000 in June, followed by an average of $70,000 in July.
This rally represents a 180% increase from the lows at the end of Q2. pic.twitter.com/CW45eVwGVB
— Messari (@MessariCrypto) 5 November 2022
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Here is AMBCryptos Price prediction for Avalanche for 2022-2023.
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The report from Messari said so Avalanche’s NFT sales increased by 180% last quarter. But despite this growth, the current state of the NFT market was far from remarkable.
A change of pace
According to data provided by AVAX NFT STATISTICS, the number of Avalanche NFT sales weakened by 28% in the last seven days. Correspondingly, the NFT market value also fell by 1.47%.
The top five collections on the AVAX NFT’s market also witnessed a weakening in volume, despite some growth towards the end of October. The same can be seen in the chart below.
Source: AVAX NFT STATS
In addition, the number of buyers and sellers has also decreased in recent months. Thus signaling a waning interest in Avalanche NFTs.
Source: AVAX NFT STATS
AVAX rejects through and through
AVAX’s declining social mentions and engagements were also detrimental to sales. According to data provided by LunarCrushsocial engagements for the Avalanche decreased by 10.55% in the last week, while social mentions decreased by 23.58%.
The weighted sentiment against the Avalanche also fell. This indicated that the crypto community had a generally negative view of AVAX. Avalanche’s development activity took a nosedive during the same period. This also showed that the development team at Avalanche had not made consistent contributions to GitHub.
This may mean that new updates and upgrades will not be coming to the Avalanche Network in the near future.
Source: Sentiment
Avalanche could not grow in the DeFi space as well. Its total value locked (TVL) weakened from $1.62 billion to $1.32 billion over 30 days, according to DeFiLama.
Furthermore, AVAX’s popular dApps also witnessed a decline in terms of unique active users. Over the past week, dApps like Trader Joe’s and Benqi have lost 24% and 67% of unique active users, respectively.
At the time of writing, Avalanche was trading at $19.50. The price has increased by 1.25% in the last 24 hours.
