Cryptocurrency analytics firm IntoTheBlock took to Twitter yesterday to share concerning news about Avalanche’s native token, AVAX. The tweet revealed a startling statistic that has caught the attention of the cryptocurrency community worldwide.
According to data from IntoTheBlock, the number of individuals holding $AVAX and currently making profits has experienced a significant decline, reaching an unprecedented all-time low. This occurrence has sparked inquiries among investors and analysts regarding the potential consequences for the future trajectory of this cryptocurrency.
The number of $AVAX holders in profit has reached an all-time low. While the asset has witnessed similar levels before, such as in June & December of 2022, it is the first time that nearly all AVAX holders (99.5%) are holding at a loss. pic.twitter.com/pdH387qHqs— IntoTheBlock (@intotheblock) August 22, 2023
To shed light on this perplexing situation, IntoTheBlock released a follow-up tweet to clarify the circumstances. The firm acknowledged the widespread curiosity surrounding the implications of this distressing statistic for the future prospects of $AVAX.
Addressing these concerns, the tweet hinted at an investigation into historical instances of $AVAX’s “max pain” moments to discern patterns that might provide insight into the current predicament.
Historical Analysis: $AVAX’s “Max Pain” Moments
IntoTheBlock’s analysis took a retrospective approach, examining previous occasions when $AVAX holders found themselves in a similarly challenging position. The findings were intriguing and showcased recurrent patterns over the past years. Notable observations from the analysis included:
- – July 2021: Over 85% of $AVAX holders were confronted with losses during these two months.
- – May-July 2022: A striking similarity emerged as holders experienced another two-month stretch where losses exceeded 90%.
- – Aug-Oct 2022: The trend persisted, with another two months witnessing more than 90% of token holders face losses.
- – Nov-Jan 2022: This trend extended into the end of the year and the start of the new year, with losses continuing to affect over 90% of holders.
- – Present Scenario: As of the latest data, the situation has endured for approximately two weeks, with more than 90% of holders once again grappling with losses.
The analysis also acknowledged that some instances of holders being at a loss were fleeting, as seen in occurrences like June 2023 and December 2020.
Speculation continues to grow within the cryptocurrency community as discussions about the potential consequences of this recent development persist. Investors and analysts are closely monitoring any indications that could signal a shift in fortunes for $AVAX holders.