AVAX Records a Slight Drop of 1.13% in Price, Down to $23.66

Avalanche [AVAX] recorded a slight drop of 1.13% in price, down to $23.66 in the past day. Analysis shows that it's likely to overcome the selling pressure

Avalanche’s [AVAX] price saw a slight drop of 1.13% in the past day, coming down to $23.66. However, despite the small setback, the crypto is likely to overcome the selling pressure and record notable price gains.

But amidst this bullish narrative, there’s still an aspect that could pose challenges to AVAX’s bullish thesis. It seems that active sellers are still present in the market, and liquidity outflow has been growing gradually.

Here’s how it could all play out.

AVAX records major activity surge

There’s been a massive surge in activity on Avalanche in the past 24 hours. Per insights from Nansen, Active Addresses jumped 221% while Transaction Count rose 109%.

This means more investors were onboarded to the chain, and a notable number of these investors completed transactions.

Source: Nansen

Interestingly, this also implies that AVAX was purchased and used in facilitating these transactions.

When AMBCrypto conducted further research, it found that 89.94% of these transactions were associated with OpenSea, a non-fungible token (NFT) marketplace.

This aligns with a broader trend — NFT applications have emerged as the second-best performing sector in the last 30 days, with 78.1% growth.

This implies that further growth in NFT applications could be instrumental in driving AVAX’s price upward in the near future.

Source: Artemis

The positive effect of this can be seen in Avalanche’s Fee Generation, which has moved from a low of $19,500 on the 11th of May to $24,300 at press time.

This fee generation also confirms that the usage of the blockchain is high. While this is important, market activity is also crucial for growth in the asset’s price.

AMBCrypto found that this isn’t the case, as the activity on exchanges, as well as liquidity outflow, has been unfavorable for AVAX.

Liquidity outflow and low trading activity persist

While on-chain activity has increased over the past 24 hours, AVAX still suffers from liquidity outflow.

According to DeFiLlama, there has been a gradual decline in the total value locked (TVL) across Avalanche protocols.

The TVL has declined by 3.26%, from $1.519 billion to $1.469 billion, with $50 million worth of AVAX sold.

Source: Artemis

At the same time, DEX Trading Volume shrank from $216.5 million to $130.3 million, showing decreasing demand on decentralized exchanges.

For AVAX to sustain upward momentum, demand must return not just on-chain — but across trading and liquidity channels too.