Millions of Dollars Leaving Avalanche Ecosystem as Network Faces Major Outage
There is a major network outage in the Avalanche (AVAX) ecosystem, leading to a significant capital outflow. The network is currently down and not producing any new blocks.
Issues Reported and Updates Shared Amid Outage
- DavyCrypto was one of the first to report the issue on X and compared it to Solana’s previous outages.
- The official Avalanche account has not provided any information about the outage, but updates are being shared on the Avalanche Status website.
- Avalanche stopped reaching block finality at 11:30 (UTC) on February 23, and developers were advised to upgrade nodes with a fix at 15:59 (UTC).
- Pop Punk discovered an issue with Ava Labs’ block explorer during the outage, which was due to an implementation problem on the website.
- Ava Labs co-founder Kevin Sekniqi has been posting updates on the issue through his personal account on X.
Avalanche Price Analysis During Outage
The native token of the Avalanche network, AVAX, experienced a 4.35% drop since the start of the outage. It traded at $36.75 at 12:00 (UTC) and reached as low as $35.15 during the outage. Currently, AVAX is priced at $35.54.
Additional Factors Impacting AVAX in the Short Term
Aside from the network outage, AVAX faced another sell-off factor when nearly $400 million in tokens were unlocked from vesting contracts on February 22. As a result, Avalanche’s market cap has decreased by over $1 billion. Investors should exercise caution and monitor how the network behaves after the fix and how the market handles any potential AVAX sell-off.