After striving to maintain its position within the top 10 cryptocurrencies by market capitalization, Avalanche (AVAX) has dropped out of the coveted list. As of the latest update, AVAX’s market cap has dwindled to $17.58 billion, a significant decline compared to its previous standing.
The shift in position was largely influenced by Toncoin (TON), whose market cap surpassed AVAX’s by $5 billion, causing AVAX to slide down the rankings. In the past 24 hours alone, AVAX experienced a depreciation of 1.28%, contrasting with TON’s 1.93% surge, propelling it to the 9th position.
This recent performance marks a departure from AVAX’s previous success, when it was considered one of the market’s top performers alongside Solana (SOL). With the changing tides, there are concerns that AVAX may continue to descend in the rankings. However, is there hope for a turnaround?
Despite AVAX’s apparent frailty, there is potential for a bounce back, as suggested by analyzing trading volume. Santiment data reveals a significant decrease in AVAX’s trading volume compared to previous levels, indicating waning interest in the token. Nevertheless, the price trend may offer a glimmer of optimism, with a possible rebound on the horizon if the downtrend weakens alongside declining volume.
However, not all sentiments are optimistic. Weighted Sentiment metrics suggest prevailing pessimism surrounding AVAX, which could influence further market movements.
The Funding Rate, reflecting the cost of holding positions in the derivatives market, remains positive, indicating increased costs for long positions. This discrepancy between increasing costs and declining prices could potentially lead to further bearishness in AVAX’s price and market cap if the trend persists in the coming days.
