Markets
Massive transfer of US$54.2 million causes AVAX to plummet 10%
Avax, a popular cryptocurrency, recently suffered a sudden and significant drop of 10%. This was triggered by a massive transfer of approximately $54.2 million worth of AVAX tokens to major exchanges. The sudden movement left investors concerned about the stability of the cryptocurrency.
Here’s more about that.
The transfer: what happened?
An investigation by ZachXBT revealed that an entity (0x32….4f30) transferred 1.96 million AVAX to Coinbase, Binance and Gate and used cross-chain bridges as THORChain. This substantial transfer aligns with the sudden decline in AVAX’s value, supporting the theory that such large moves can heavily influence market prices.
AVAX Price Action Explained
On June 22, 2024, AVAX began trading around $27.80 in the first hour. However, at the tenth hour, the price fell to nearly $24.99, reflecting significant market stress exacerbated by the large token transfer. Since then, there has been a slight recovery, but the general trend remains uncertain.
As of early June 2024, AVAX is valued at approximately $36.09. Since then, the cryptocurrency has seen a persistent downward trend, with more red candles (indicating price drops) than green candles on the daily charts.
Over the past month, AVAX has fallen 36.1%, with a 15.0% drop in the last week alone. Over the past 24 hours, AVAX has decreased by 6.3%, followed by a slight increase of 1.2% in the most recent hour, reflecting the volatility seen in hourly trading.
What this means for investors
The recent large transfer of AVAX tokens to exchanges had an immediate and significant impact on their market value. This event underscores the volatile nature of the cryptocurrency market, where substantial transfers can heavily influence prices and investor sentiment.
Understanding these developments is crucial for investors navigating the complexities of digital assets like AVAX.
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