The Avalanche token (AVAX), like most other altcoins, felt the bearish impact of the general market downturn, which resulted in a billion-dollar liquidation in the crypto market. Historical price data, however, shows that AVAX has been experiencing selling pressure long before this recent market crash.
As expected, the struggling price of the Avalanche token has also been reflected in the portfolio of the cryptocurrency’s investors, who seem to be drowning in losses at the moment.
On Tuesday, August 22, market intelligence platform IntoTheBlock revealed – via a post on X (formerly Twitter) – that the number of AVAX holders in profit is at an all-time low.
According to IntoTheBlock data, approximately 99.5% of AVAX holders are at a loss. This metric implies that nearly all investors in this cryptocurrency bought at a higher price and are currently holding at a loss due to the sustained bearish trend.
From a historical perspective, AVAX holders have witnessed similar levels of loss in the past, albeit not to this extent. The on-chain tracker reported that the number of AVAX holders in profit was almost as low in June and December 2022.
It is worth noting that these losses are unrealized, and they only become real when the Avalanche tokens – being held – are traded off. Although a high number of crypto holders in loss is not exactly a positive signal, it can be an indication that investors are yet to lose faith in a token and may even be banking on a recovery.
As mentioned earlier, the AVAX price has been struggling long before the recent market downturn, down by 52% from its yearly high of 21.37%. Unfortunately, the Avalanche market has been in a steep decline since notching a swing high in April.
In the past week, which coincided with the $1-billion market liquidation, AVAX has lost more than 17% of its value. Furthermore, a broader look at the market data shows that the token is on a nearly 25% decline in the last 30 days.
The future doesn’t look particularly bright for AVAX, especially with its upcoming token unlock event. A total of 9.54 million tokens is set to be unlocked on August 26, with a large portion of the unlocked tokens expected to hit the open market, potentially exacerbating the struggles of the Avalanche price.
According to CoinGecko data, AVAX is currently valued at $10.20, registering a 3.5% price decline in the past 24 hours. With a market cap of roughly $3.52 billion, the Avalanche token ranks as the 22nd-largest cryptocurrency in the market.
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