During the first half of 2024, 259.8k AVAX worth $10.66 million were burned.

Given that the total supply of AVAX tokens is capped, the transaction fees paid in AVAX tokens are burned and permanently removed from the supply. This reduction in supply contributed to a massive increase in AVAX price and its decoupling from Bitcoin's price.

After reaching new highs in March, following an increase in Bitcoin's price, the AVAX price has been on a downward trajectory and is testing previous lows as support. It is also increasingly diverging from Bitcoin's movements.

Avalanche is in a stable state where transaction counts have remained within a range over time, excluding the memecoin season around mid-March. A surprising surge in late February 2024 was observed due to the on-chain inscription activity, causing a spike in transaction counts while gas fees remained steady. This demonstrates the resilience of the network, maintaining average gas fees despite increased network activity.

During this period, AVAX token price action seemed to converge with Bitcoin's price movement. However, after April, AVAX experienced a more significant retracement compared to Bitcoin, which held its price over time.