Avalanche (AVAX), a prominent player in the blockchain space, has released its Q2 2024 report, and the news isn’t all sunshine and rainbows. While some metrics show stability, key areas like fees, network activity, and NFTs experienced significant declines compared to Q2 2023. The early days of Q3 also seem bleak, mirroring the downward trend from the previous quarter.

Q2 Paints a Picture of Decline

A report by Coin98 Analytics revealed a 22% drop in AVAX’s fees and revenue compared to the same period last year, reaching a total of $3.5 million in Q2 2024. Network activity also saw a slump, with daily active addresses falling 26% year-on-year and daily transactions witnessing a 30% YoY decline. Despite onboarding over 2 million new addresses, the total unique addresses on the network remained lower than Q2 2023.

The NFT market on Avalanche took a massive hit, with a staggering 90% decrease in NFT creation compared to Q2 2023. However, there were some bright spots. The total value locked (TVL) in DeFi applications using Avalanche grew 4% year-on-year to $0.71 billion, and development activity remained relatively stable.

A Concerning Start to Q3

Given the disappointing Q2 report, concerns naturally arise about AVAX’s performance in the current quarter. An analysis by AMBCrypto of data from Artemis suggests a rough start for Q3 as well. Daily active addresses and transactions dropped sharply after a brief spike on July 6th. This decline was accompanied by a similar trend in fees and revenue.

Furthermore, AMBCrypto’s analysis of Santiment data revealed a decrease in development activity and NFT trade counts on the Avalanche network. These metrics paint a worrying picture for AVAX’s Q3 prospects.

Price Action Reflects the Downturn

AVAX’s price action mirrored the overall decline, dropping more than 13% in the past week. At the time of writing, it trades around $25.70 with a market capitalization exceeding $10.12 billion. Analysts predict a potential further dip to $22.4 if the downtrend persists. However, a reversal could see AVAX reclaim the $27 mark within a short period.

A Wait-and-See Approach for AVAX Investors

The coming weeks will be crucial for Avalanche. Whether it can reverse the current trend and deliver a positive Q3 report remains to be seen. Investors are advised to closely monitor developments and exercise caution until a clearer picture emerges.

By Joadin Maina

Beyond the hype, I untangle the web3 revolution, guiding curious minds through the labyrinth of decentralized possibilities.