Avalanche (AVAX) price is back after last few trading sessions Terra buys tokens worth $200 million, The coin is trading at $88.10, which is slightly above this week’s low of $81.56. The price is still down about 14.6% from this year’s high.
avalanche development slows
Avalanche is one of the most famous ethereum-killers in the industry. Its developers have created a platform where people can build all kinds of applications. Today, Avalanche is widely used by developers building decentralized finance (DFI) and non-fungible token (NFT) platforms.
Avalanche is known for its fast speeds and low transaction fees. Plus, developers have unveiled millions of dollars in incentive fees for developers to build into their ecosystem.
For example, in 2021, he launched Avalanche Rush, a fund that went to app builders across all industries. This year, he unveiled another fund of more than $200 million for developers building the Metaverse project.
As a result, the avalanche ecosystem is growing. According to DeFi Lama, the total value locked (TVL) in the ecosystem has exceeded $10 billion. Some of the most famous projects in the ecosystem are Trader Joe’s and BenQI.
However, avalanche price has struggled over the past few weeks after signs of stress emerged in the ecosystem. After reaching the $10 billion mark, the data shows that TVL’s growth has been a bit tense as you can see in the chart below. For example, Curve TVL is down 23% in the last month while Platypus Finance TVL is down by over 25%.
This slowdown is mainly because the DeFi industry is getting crowded as the number of projects grows. Some of the most famous projects that have come up are VVS Finance and Anchor Protocol.
Avalanche Price Prediction
Turning to the four-hour chart, we see that the price of Avalanche has been in a deep decline over the past few weeks. This decline has reversed over the past few sessions after a major buy by Terra.
However, a closer look reveals that this recovery has been unconvincing. Besides, it failed to move above the 50-period moving average. Hence, there is a possibility that AVAX price will resume the bearish trend in the coming days. If it does, the next major support to watch for is $80. Will happen