This year has seen a significant plunge of 18% in the token market, affecting top assets such as Bitcoin (BTC) and Ethereum (ETH). Market corrections triggered by large liquidations have impacted the performance of various cryptocurrencies, including AVAX. However, it is crucial to note that last year AVAX experienced remarkable growth, defying the wider market plunge at the time. AVAX’s market capitalization soared over $14.9 billion, and it reached a peak of $40. A focal point for traders, AVAX dominated the altcoin rally and gained attention from institutional investors who saw bullish sentiment firming around the token.
The asset’s growth can be attributed to its successful tokenization efforts. Cryptonews reported on AVAX’s year-to-date growth, highlighting the significance of tokenization in boosting its value. While AVAX has witnessed a decline of 18.13% at present and 5.91% in the last 24 hours, its trading volumes have shown an increase of 29.63% to $737 million. Currently valued at $32.53, AVAX holds the ninth position in terms of market capitalization. Despite the recent dip in momentum, the asset still maintains a 20% monthly gain from the previous year.
Despite its strong finish in the previous year, AVAX has faced obstacles to its expected inflows this year. The market witnessed a major sell-off at the beginning of the year, with Bitcoin’s prices slumping over 10% on January 3, erasing the gains recorded in the first two days. The approval of a spot Bitcoin ETF in the United States by the Securities and Exchange Commission (SEC) was eagerly anticipated by traders, as it presented an opportunity for institutional investors to enter the market. However, Matrixport, a cryptocurrency service company that held a bullish stance on the ETF approval, released a report stating that all ETFs could be rejected in January. This announcement led to widespread liquidations across various exchanges, catching many traders off guard.
“According to data from Coinglass, over $577 million in long positions were liquidated in 24 hours as traders were caught off guard.”
The report from Matrixport projected a bullish drive and a potential $50,000 BTC price by the end of January if the spot ETF were approved. However, the uncertain regulatory climate has caused setbacks and increased market volatility.
