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AVAX Losses

Definition

AVAX losses signify a reduction in the market valuation of Avalanche’s native token, AVAX, relative to an investor’s initial acquisition cost. This situation arises when the prevailing market price of AVAX trades below the price at which it was bought. Such value depreciation can result from general cryptocurrency market corrections, specific events affecting the Avalanche network, or changes in investor confidence. Analyzing AVAX losses aids in comprehending investment performance and associated market risks.