(Cointelegraph) Avalanche’s native token AVAX fell up to 30% on Wednesday to trade at $32.50, the lowest since September 2021.
The decline in Avalanche followed concerns that the Luna Foundation Guard could turn to the reserves of the crypto token it holds to salvage its stablecoin UST. LFG is estimated to hold about 1.97 million AVAX tokens as reserves worth about $74.75 million
Concerns grew after UST fell to as low as 23 cents, questioning its status as a stablecoin, which also dragged Terra’s native token to below $1.
The fall in AVAX was further heightened by general crypto weakness as major tokens fell on concerns of a higher interest rate. An inflation data, which showed cooling prices, pushed Bitcoin to below $30,000 before it recovered again to trade above $31,000.
AVAXUSD is currently down -25.72%.
