Avalanche’s (AVAX) positive performance, despite the difficult global economic period and the cryptocurrency industry’s hurdles, was recorded by the popular analyst, Coin Bureau, in a video published on his YouTube channel, which has 2.06 million subscribers.
It is important to note that the Coin Bureau warned that the bear market in cryptocurrencies could last as long as two years, however, as it notes, Avalanche is doing quite well so far:
“In addition to these depressing macroeconomic factors, approximately 25 million additional AVAX have been put into circulation since the beginning of the year, which is a consequence of Avalanche’s aggressive vesting program.
Assuming an average AVAX price of around $50, this means that AVAX has seen sales pressure of up to $1.25 billion in recent months. Also, I’m sure there have been other significant sales pressures for Avalanche, however the impact has not been as pronounced as news of Avalanche related acquisitions and investments has not been absent over the last year or so.
Avalanche has an ongoing incentive program for DeFi, worth $180 million in AVAX, as well as the recently announced $290 million multi-incentive program, which is likely funded by AVAX sales. So yes, there is a lot of AVAX sales pressure.
That’s why it’s amazing to see that AVAX has held up so well with so much sales pressure and that’s a consequence of the solid demand that’s there, which is seen by both everyday users and institutional investors.
The number of unique wallets on Avalanche’s C-chain has increased by 50% in the last four months and the number of daily transactions has been on a strong upward trend until very recently.”
It may even lose half of its current value
Although AVAX has managed to stay alive, however the experienced analyst warns that it could lose more than half of its current value during this “winter” in the cryptocurrency industry:
“The fact that AVAX does not force payments for transaction fees on Avalanche subnets, this could have a negative impact on its future price as it would reduce demand”.
The demand for AVAX coming from subnet validators will be sufficient since they should receive 2,000 AVAX each. This arrangement makes Avalanche’s economic architecture similar to those of Polkadot and Cosmos.
It is very possible that AVAX could fall as low as $10 during this bear market, but with any luck we could see it regain its strong support level around the $40 range,” said Coin Bureau.
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