• GMX moves to Arbitrum, threatening Avalanche.
• Decreasing sentiment, declining TVL & NFT trades for Avalanche.

According to the latest data from Artemis, the majority of GMX‘s activity has shifted from Avalanche [AVAX] to Arbitrum. This shift has raised concerns about the potential impact on Avalanche, as GMX is currently the largest perp by market cap and outperforms many of its competitors in terms of Total Value Locked (TVL).

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Avalanche gets impacted

On one hand, the negative sentiment surrounding Avalanche, as indicated by Santiment’s data, suggested that the overall outlook of the AVAX token in the crypto community was negative. This caused a decline in the network’s growing TVL, which stood at $970.16 million at press time.

Additionally, the overall volume of the AVAX token declined. According to Santiment’s data, the overall volume for AVAX fell from 1.2 billion to 3.14 million. The number of NFT trades on the network also fell, suggesting an overall lack of interest.

However, there were some positive developments as well, one of them being the decreasing volatility of the AVAX token. A decline in volatility could attract some investors who are seeking stability for their portfolios.

How much are 1,10,100 AVAX worth today?

It’s also worth noting that despite the negative conditions for Avalanche, the number of stakers on the network grew by 21.5% in the last month, according to Staking Rewards. The number of stakers on the network was 65,988 at the time of writing. This suggested that there is still interest in the network, though its future remained uncertain.

It’s important to note that GMX’s move from Avalanche to Arbitrum could be due to various reasons, including the increasing popularity of the Arbitrum network and its ability to handle larger volumes of transactions efficiently. This shift could pose a threat to Avalanche, but it’s also possible that the network could recover and continue to grow.

• AVAX’s metrics looked bearish detailing why AVAX was on a downtrend. 
• However, growth was noted in AVAX’s NFT ecosystem as sales increased.

Avalanche’s [AVAX] performance on the price front was concerning for the investors, as it declined by more than 5% in the last 24 hours.

According to CoinMarketCap’s data, AVAX’s price registered a decline of 3% last week, and at the time of writing, it was trading at $19.86 with a market capitalization of over $6.2 billion.

This downtrend can be attributed to the current market conditions, which have restricted most of the cryptos from registering gains. However, a look at Avalanche’s on-chain metrics revealed that there was more to the story. 

How much are 1,10,100 AVAX worth today?

These are the concerns

Santiment’s chart pointed out that AVAX’s volume decreased substantially, which by and large was a negative signal. The demand from the derivatives market also took a blow as the DyDx funding rate went down.

The crypto community’s confidence in the coin also seemed to have plummeted as its positive sentiment metric decreased.

The recent price decline was accompanied by an increase in AVAX’s 1-week price volatility, suggesting a further downtrend considering the rest of the metrics.

Moreover, DeFiLama’s data revealed that Avalanche’s Total Value Locked (TVL) registered a 24-hour decline of more than 2%.

Realistic or not, here’s AVAX’s market cap in BTC’s terms

Is a trend reversal viable?

Interestingly, even though the week was not good for investors, AVAX’s NFT space had things going for itself. AVAX Daily released Avalanche NFT weekly highlights, which pointed out the ecosystem’s growth.

As per the latest data, the NFT sales and sales volume increased by double digits in the last seven days. 

🔺Avax NFT Weekly Highlights🔺

MarketCap: $45.32M
Volume: $299.02K
Sales: 8912#AVAX #Avalanche $AVAX #NFT #GameFi pic.twitter.com/9Rz2HyWkD2

— AVAX Daily 🔺 (@AVAXDaily) February 4, 2023

While SWARMS remained the most impressive NFT with 19 sales at an average price of $45.24 last week, the remaining NFTs had a volume smaller than 10 NFTs.

For several weeks in a row, Chilkn Roost and OG Odin held the top volume positions. Last week, Chad Doge Supers joined Chilkn Roost and OG ODIN on the list, indicating that the project was gaining traction with buyers. 

Nonetheless, growth in the NFT space did not seem to be enough for AVAX to initiate a trend reversal, as the daily chart also painted a bearish picture.

AVAX’s Relative Strength Index (RSI) registered a downtick and was heading toward the neutral mark, which was bearish. The Money Flow Index (MFI) also chose to follow a similar route.

Moreover, AVAX’s Chaikin Money Flow (CMF) was resting below the neutral mark, further increasing the chances of a continued downtrend. However, the Exponential Moving Average (EMA) Ribbon remained bullish as the 20-day EMA was above the 55-day EMA.

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