📉 Avalanche (AVAX) Drop Ignores Positive Network Records.

The cryptocurrency market is in a delicate moment, and Avalanche (AVAX) is feeling the impact! 😥

Despite having bravely resisted until recently, with an appreciation of nearly 3% on Wednesday, AVAX has entered the general downward trend.

Price Situation 📉

* In 24 hours, AVAX recorded a drop of 9.6% and is struggling to stay above US$ 30 per token.

* For the week, the accumulated losses reach 5.8%.

The Mystery of Positive Indicators 📈

The most intriguing thing is that this drop happens even with the Avalanche network showing very positive internal indicators! 🚀

* Record on DEXs! The trading volume on the decentralized exchanges (DEXs) of the network reached a historic record of US$ 1.3 billion on Wednesday! 🤯 This surpassed the previous peak of US$ 1.18 billion (September 2023).

* On Thursday, the volume fell slightly to US$ 1.174 billion, but it is still an extremely high level of activity.

Trading volume in Avalanche DEXs. Source: DeFiLlama.

What Is Happening? 🤔

Why does the price not react to the strength of its DeFi ecosystem?

* TVL down: The Total Value Locked (TVL) in Avalanche fell nearly 5% in the last 24 hours. 😟 However, this is a reflection of the drop in token prices, and not a massive capital exodus.

* The Strength of Bitcoin (BTC): The truth is that the performance of AVAX does not only depend on its indicators. Its price is strongly linked to the behavior of BTC and large-cap cryptocurrencies, which dictate the rhythm of the market! 👑

* Macroeconomic Impact: The recent overall market contraction is partly due to the Federal Reserve's (Fed) decision to cut interest rates in the US. This generated volatility and a decline in BTC that dragged most assets down, including Avalanche. 🌐

Will the price of AVAX finally react to its internal records, or will it continue to follow the rhythm of the crypto market? Let's keep an eye out! 👀