фото показано с : invezz.com

Avalanche’s (AVAX/USD) DEX volume is struggling even as DeFi protocols stage a comeback in 2023. These trends point to significant challenges in the ecosystem as it attempts to take market share from the likes of Ethereum, BNB Chain, Polygon, and Arbitrum.

Avalanche is one of the top Ethereum-killers in the industry. It prides itself of having faster transaction speeds and extremely low fees. After having a remarkable bounce in the first days, Avalanche’s ecosystem seem to be struggling. 

According to DeFi Llama, Avalanche has seen the total value locked (TVL) drop to about $992 million, making it the 6th biggest platform in the world. At its peak, it had a TVL of more than $12 billion. In AVAX terms, the network’s TVL has dropped to 49.9 million AVAX, the lowest point since October 2021.

Additional data shows that the volume of coins traded in Avalanche’s ecosystem has dropped by 21% in the past 7 days. The network had over $80 million in transactions in the past 24 hours. Ethereum, on the other hand, handled over $2.4 billion in the same period. 

On a monthly basis, Avalanche’s volume in January came in at over $1.75 billion. At its peak, the network was handling over $19 billion, as shown below. 

A closer look at Avalanche’s top platforms shows that their volumes have dropped. Trader Joe’s, KyberSwap, GMX, and Woofi have seen their volumes drop by over 20% in the past 7 days. GMX is notable here considering that its Avalanche network has a TVL of $99 million compared with Arbitrum’s $500 million.

DeFi is not the only area where Avalanche is lagging. According to CryptoSlam, total NFT sales in January came in at just $1.4 million. That was slightly higher than December’s volume of more than $1.4 million. In January 2022, Avalanche handled over $152 million worth of NFTs. 

The number of Avalanche NFT users has been relatively modest as well. Unique sellers in January came in at 4,422 while buyers were just 4,822.

Additional data by TokenTerminal shows that the number of Avalanche users has been falling. The number of active users in the network came in at about 26k on Wednesday. In December, Avalanche had over 42k users. 

Despite the weak metrics, AVAX price has done well in the past few days. It moved back to $20 on Thursday, which was about 88% above the lowest point since January. This rebound happened as the amount of short liquidations increased. It also rose above the 25-day and 50-day moving averages. Therefore, the coin will likely continue rising in the coming days.

The post Avalanche price rebounds even as DEX and NFT volume retreats appeared first on Invezz.

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