Avalanche's native cryptocurrency, AVAX, has experienced a sudden and drastic decline, shedding over 10% of its value in the past 24 hours. This unexpected downturn has raised eyebrows in the crypto community, prompting investigations into the factors driving the sell-off. Despite the broader crypto market's stability, AVAX has been on a free fall, plummeting from $28 to a low of $24.86 at press time.

The sudden crash has wiped out 38.85% of the gains AVAX made just a month ago, leaving market participants scrambling for answers. Some have pointed to the Luna Foundation as a potential culprit, alleging that the project has begun selling its AVAX holdings. However, prominent crypto investigator ZachXBT has disputed this narrative, revealing that the Luna Foundation has not moved its AVAX tokens since last month.

Instead, ZachXBT suggests that the AVAX price crash was likely triggered by a large-scale transfer of 1.96 million AVAX tokens, worth approximately $54.2 million, to prominent centralized exchanges like Coinbase, Binance, and Gate, as well as bridging via THORChain. This transfer has sparked concerns about the potential sale of AVAX tokens, leading to the sudden downturn.

Despite the current turmoil, market analysts remain optimistic about Avalanche's prospects. Martin Hiesboeck, Head of Research at Uphold Exchange, believes that Avalanche is one of the most undervalued projects among the leading blockchain networks. This sentiment was reinforced by the recent announcement that gaming giant Konami plans to launch an NFT platform called Resella on Avalanche.

In conclusion, the mysterious sell-off of Avalanche's AVAX token has sparked a probe into the factors driving the sudden downturn. While the exact cause remains unknown, market participants are eagerly awaiting a recovery for AVAX from its recent low. As the investigation unfolds, it is clear that Avalanche remains a promising project with significant potential for growth and adoption.