According to Golden Finance, data from The Block shows that the number of active addresses on Avalanche's C-Chain has plummeted to a 12-month low of 31,000, similar to levels seen in October 2023. The network's active addresses peaked at 99,000 in December 2023, meaning user activity is down nearly 70% from its December high.

Analysts suggest the decline in active addresses could be attributed to several factors, including the overall market downturn, intensified competition from other Layer 1 and Layer 2 solutions, and cooling speculative interest.