On September 11, Avalanche (AVAX) saw some significant announcements and events, including opening OpenSea, the largest peer-to-peer marketplace for NFTs using Ethereum, on the Avalanche proof-of-stake blockchain.
Gemini, a digital asset exchange and custodian, has previously announced support for AVAX trading on its platform. However, according to Avalanche’s third-quarter report, the network has not had a successful run.
It was revealed that the asset’s network did not perform very well during the third quarter of 2022, which was one of the reasons why this quarter was not seen as particularly advantageous. The value of the Avalanche network increased by a modest 3.3%. A 65.5% decline in daily transactions and a 76.2% fall in transaction fees resulted in a 94.1% loss in overall income.
When the daily transaction metric was analyzed, it was observed that the overall number of transactions on the network had decreased. According to the statistics, the daily transactions had declined dramatically from 934,030 in May to 145,518 in June, which looked like the new volume range on the network. This indicated that the network was being used less often.
The number of daily active addresses seems to have decreased as well. In May, there were over 113,000 active addresses, but by June, it had decreased to just over 30,000. As a result, there was less commerce transacted across the network.
On the other hand, the unique addresses measure was encouraging, exhibiting an increasing trend and surpassing three million addresses. Meanwhile, the development activity indicator showed a declining trend, with a score of 8.45, indicating that few activities were coming from the chain. According to DefiLlama, the Total Value Locked (TVL) was assessed to be £1.38 billion at the time of writing, with a 0.25% drop in the previous 24 hours.
A look at how the price of AVAX has changed over the last several months reveals a pattern consistent with a downward trend. It was over £62.54 in May, but at the time of writing, it has dropped to £13.35. This drop was larger than 79%, according to the price range.
Near the end of August, a prominent whistleblower known only as “Crypto Leaks” claimed that Ava Labs and the law firm Roche Freedman had struck a deal in which Roche Freedman would gather confidential information about competitors and turn them into the targets of class action lawsuits in exchange for large amounts of AVAX tokens and Ava Labs common stock.
Despite their denials, the crypto community was outraged by the charges. This serious allegation might have contributed to the network’s downfall this quarter.