of Avalanche [AVAX] fundamentals remain weak despite large flats

  • Most of Avalanche’s top games saw a drop in their unique active users.
  • AVAX is down 24% in the previous month to press time.

avalanche [AVAX] registered a significant drop in its weekly trading activity throughout the month of February. According to Token Terminal, the average weekly active users per day for the chain is down nearly 28% since January.

As users have decreased, weekly transaction fees paid to the platform have halved over the same time period.

Source: Token Terminal

The decline in trading activity also affected the price of AVAX. The coin is down 24% in the previous month, while the weekly drop was 8%, according to CoinMarketCap.

Read it of Avalanche [AVAX] Price forecast 2023-24

Big partnerships fail to make an impact

GameFi has become one of the fastest growing sectors in the Avalanche ecosystem. Recently, the platform has entered into high-profile partnerships to increase its appeal in the play-to-win landscape.

It recently announced a collaboration with Japanese gaming pioneer GREE, which chose Avalanche for its dive into the Web3 world.

In the last month, Avalanche struck a deal with the Indian game streaming platform Loco, to launch an NFT market.

However, a look at the metrics painted a different picture for the chain. Most of the top games in the ecosystem saw a drop in their unique active wallets over the past 30 days, data from DappRadar shown

Additionally, big-ticket partnerships failed to provide a major boost to Avalanche’s NFT activity in February. At the time of writing, total NFT trading volume has collapsed by 80% from the previous month, according to Santiment.

Source: Santiment

Realistic or not, here it is AVAX market cap in BTC

AVAX in the grip of the bears?

The outcome of the GREE deal was met with applause. At the time of writing, AVAX is up 2% in a 24-hour period, according to CoinMarketCap.

Technical indicators, however, were on the side of a bearish idea for the short term.

The Relative Strength Index (RSI) fell in February and was well below the neutral 50 at press time. This indicates that selling pressure is strong. The rising red bars of the Awesome Oscillator (AO) also mean that the bears are gaining strength.

AVAX moved into a range as indicated and faced multiple rejections at the $20 mark. A break below the bottom of the range will confirm the bearish view of the coin.

Source: Trading View AVAX/USD

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