- For its validators, Avalanche developed new technology.
- The weighted sentiment, however, remained negative and fell further, as did TVL.
Avalanche [AVAXofficial ]’s account tweeted on December 8 that it was developing its technology for the benefit of its validators. For existing validators, the platform would introduce a new Banff 4 technology to enhance bandwidth optimizations.
Even though Avalanche’s technology is constantly evolving, the number of stakers on the platform decreased by 28.03% over the past 30 days. Staking Rewards data shows that there were 43k active stakers on the Avalanche network at the time of writing.
Notably, Avalanche also experienced problems in the DeFi market.
The picture below shows how significantly Avalanche’s TVL dropped over the past few months. Additionally, its TVL dropped by 3.36% over the previous 24 hours, and as of press time, the total value locked was $845.64 million.
Additionally, Avalanche struggled to generate enough revenue. The fees collected by Avalanche decreased by 20.6% over the previous 30 days, according to Token Terminal.
NFTs cause the collapse
In actuality, the network struggled in the NFT sector, as the value of the top NFT collections decreased noticeably over the previous month. Along with that, fewer NFTs were also being created on the network.
Additionally, over the past few months, fewer people were using Avalanche on a daily basis. Surprisingly, the volume of transactions on the network also decreased over the past month, falling from $2.07 million to $1.9 million.
The volume of Avalanche suffered because of its dwindling activity. In one month, it decreased from 770 million to 110 million.
Along with that, the overall opinion of Avalanche in the crypto community remained largely unfavorable. This shows that AVAX received more negative than positive feedback from the crypto community.
However, it remains to be seen whether Avalanche’s technological advancements will aid the network in the coming future.
At the time of press, AVAX was trading at $13.17. Its price had decreased by 0.16% over the last day.