AVAX represents a project with solid technical foundations, aiming to solve central challenges of modern blockchains and offer an efficient and customizable ecosystem.
However, its devaluation and loss of hype stem from both broad market factors and dynamic competition in the sector, as well as issues like token supply and public perception of its utility versus other competing networks.
🐻Despite the solid foundations, AVAX lost value and hype mainly due to external and competitive factors:
· Strong competition from other L1s and, above all, Ethereum's Layer-2s, which have captured users and liquidity.
· Loss of market attention, with less speculative narrative compared to previous cycles.
· Supply pressure caused by unlocks and emissions for staking.
· Disconnection between actual network usage and token pricing.
· Unfavorable macro environment and market cycles.
🚂In summary, Avalanche remains a technically relevant project, but its devaluation reflects less structural failures and more a shift in market focus, where narrative, liquidity, and competition weigh as much as technology.
Whether AVAX will reclaim ground will depend on its ability to attract developers, demonstrate sustainable real use cases, and translate network growth into market value over time.
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