Avalanche (AVAX) Hits Two-Year Low Despite Partnerships with Alibaba Cloud and AWS

Avalanche (AVAX) has recently dropped below $10, reaching $9.16, marking a 14.5% decline over the past 30 days and a significant 50.5% drop over the last year. This price point represents the lowest level for the coin since January 2021.

AVAX/USDT price chart on the 1D timeframe on Binance as of September 19

The decline in AVAX's price correlates with reduced activity within the Avalanche ecosystem. According to DeFillama data, the Total Value Locked (TVL) on Avalanche has sharply decreased from $11 billion in November 2021 to the current $497 million. Similarly, AVAX's own TVL has dropped from a peak of 135 million AVAX in May 2022 to the current 53 million AVAX.

Over the past 24 hours, Avalanche has seen only 30,000 active users with a capital inflow of $1.57 million, trading volume of $10.8 million, and generated fees amounting to just $7,882.

TVL and user activity on Avalanche. Source: DeFillama

Contrasting with Avalanche's peak performance in late 2021 to early 2022, where daily transaction volumes reached $500 million, daily transaction fees peaked at $100,000, and first-time user counts surpassed 80,000 in January 2022.

Additionally, AVAX has faced significant unlocking schedules, adding selling pressure to the coin. Under the unlocking plan, approximately 75 million AVAX are set to be unlocked annually, equivalent to about $700 million at current rates.

Annual AVAX unlocking volume. Source: Token Unlocks

Despite the price decrease, the Avalanche ecosystem continues to attract high-profile partnerships. In May, Avalanche collaborated with Alibaba Cloud to create the Cloudbase metaverse platform. Earlier this year, Avalanche also partnered with another cloud computing giant, Amazon Web Services (AWS), signaling positive prospects for the blockchain's recovery in the future.