- Interest in Liquid Staking on the Avalanche network declined over the past few days.
- Activity on the network continued to grow as AVAX fell.
As per recent data, the total Avalanche [AVAX] staked surged past 8 million. Despite the surge in overall AVAX staked, there was a concerning trend observed over the last few days.
According to AMBCrypto’s look at Flipside’s data, the net flow of staked Avalanche fell significantly over the last few days.
Source: Flipside
The significant decline in the net flow of staked Avalanche over the last few days could potentially have negative implications for the Avalanche network.
What’s going on with Avalanche?
A decrease in the net flow of staked tokens suggested a reduction in the overall amount of AVAX being staked or locked in the network’s validator nodes.
This decrease may indicate a lack of confidence among token holders in staking their AVAX, potentially signaling concerns or uncertainties about the network’s performance, security, or future prospects.
Despite the decline in liquid staking, the activity on the Avalanche network continued to soar.
AMBCrypto’s analysis of Token Terminal’s data revealed that the number of daily active users on the network grew by 29% over the past month.
Likewise, revenue generated by the network grew by 10.5% during the same period.
Source: Token Terminal
State of AVAX
Coming to the price of the AVAX token, it was seen that the price fell by 27.61% since hitting the $65 level on the 18th of March.
During this period, the price of AVAX exhibited lower lows and lower highs, showcasing a bearish trend. The CMF (Chaikin Money Flow) and RSI (Relative Strength Index) were relatively neutral.
This could imply that AVAX could see some sideways movement going forward before making a bigger move.
Source: Trading View
Realistic or not, here’s AVAX market cap in BTC’s terms
A large part of AVAX’s price movement may also be determined by how it is being perceived on the social front. Santiment’s data indicated that the Social Volume around AVAX had declined significantly.
Moreover, the Weighted Sentiment around AVAX had also fallen, implying a rise in negative comments around the token.
Source: Santiment