Avax, one of the top 10 cryptocurrencies by market valuation, crashed nearly 30% in one day.
After reaching a record price of $134 at the end of 2021, the Avax has seen its value collapse in the last 12 hours to reach a price of $32, the lowest since August 2021. A collapse which is attributed to the collapse of the UST, the famous stablecoin of the Luna blockchain, which has seen its value collapse. While UST is in no way tied to the Avalanche ecosystem, the Luna Foundation, which manages UST’s finances, has used Avax as a “collateral asset”, an asset used to secure the price of its stablecoin. She held 1.97 million Avax tokens, worth $74.75 million. She decided to part with it and drastically dropped the price of cryptocurrency.
The Avalanche blockchain is one of the top 10 most popular blockchains. It is intended as an alternative to Ethereum, Solana or Cardano.
In recent hours, the Luna Foundation has also sold a significant amount of Bitcoin. Since it is one of the ten largest Bitcoin wallets on the planet, these sales have a huge impact on the price of cryptocurrencies.
On Wednesday, around 7 p.m., the Avax price flirted with $32. And this while a few days earlier, on May 6, the Avax was trading at $60.
This massive sell-off could cause panic in the market, as was the case with Luna. The cryptocurrency touched $1 this Wednesday evening, while it was still worth $120 a few weeks ago…
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