[Has AVAX already reached the bottom after a 92% drop? You might be wrong]
Lately, many people have been asking me: AVAX is down 92% from its all-time high—can we buy the dip now? As more and more people ask, I actually want to say something different.
Being oversold doesn’t necessarily mean it has hit bottom. I’ve said this for years, but whenever the market turns, everyone still forgets. A 92% drop is certainly scary, but you have to ask: why did it drop so much? Is the sector failing, or did the entire ecosystem’s fundamentals face a fundamental problem?
After looking into it, my conclusion is: AVAX’s issue isn’t technology—it’s a mismatch in narrative. Most people treat it as a pure Layer 1 blockchain to compare with Solana and Aptos, competing for ecosystem mindshare. But the game AVAX is playing, in my view, is enterprise-grade financial infrastructure—RWA and compliance-asset tokenization.
Can the business logic really work? Honestly, I can’t guarantee it. The RWA track does have demand, but the implementation difficulty is far higher than ordinary DeFi. It requires regulatory coordination, the entry of traditional financial institutions, and mature compliance frameworks. This isn’t something AVAX alone can decide.
So what should regular investors do? My advice is: don’t rush to judge whether AVAX is expensive—first get clear on what it’s trying to become. If its goal is an enterprise RWA platform, then the current price isn’t the most important factor. What matters is who will become its first batch of traditional finance customers.
Can this actually be realized? What’s your take?
Lately, many people have been asking me: AVAX is down 92% from its all-time high—can we buy the dip now? As more and more people ask, I actually want to say something different.
Being oversold doesn’t necessarily mean it has hit bottom. I’ve said this for years, but whenever the market turns, everyone still forgets. A 92% drop is certainly scary, but you have to ask: why did it drop so much? Is the sector failing, or did the entire ecosystem’s fundamentals face a fundamental problem?
After looking into it, my conclusion is: AVAX’s issue isn’t technology—it’s a mismatch in narrative. Most people treat it as a pure Layer 1 blockchain to compare with Solana and Aptos, competing for ecosystem mindshare. But the game AVAX is playing, in my view, is enterprise-grade financial infrastructure—RWA and compliance-asset tokenization.
Can the business logic really work? Honestly, I can’t guarantee it. The RWA track does have demand, but the implementation difficulty is far higher than ordinary DeFi. It requires regulatory coordination, the entry of traditional financial institutions, and mature compliance frameworks. This isn’t something AVAX alone can decide.
So what should regular investors do? My advice is: don’t rush to judge whether AVAX is expensive—first get clear on what it’s trying to become. If its goal is an enterprise RWA platform, then the current price isn’t the most important factor. What matters is who will become its first batch of traditional finance customers.
Can this actually be realized? What’s your take?