AVAX slides 10% despite Broadridge on-chain proxy voting

Avalanche’s integration with Broadridge Financial Solutions failed to halt AVAX’s momentum. On April 6, Broadridge (NYSE: BR) expanded its governance platform to support on-chain proxy voting and initially rolled it out on Avalanche. Galaxy Digital (NASDAQ: GLXY) was reported as the first adopter, planning to use it for its May shareholder meeting. However, AVAX extended losses, dropping nearly 10% over the past day. On-chain fundamentals weakened as capital exited the ecosystem. Total Value Locked (TVL) fell to about $720M, the lowest since July 9, 2024, signaling a loss of confidence. Derivatives data turned more bearish. CoinGlass showed the AVAX long/short ratio falling to 0.89, implying short positions outweighed longs. Open Interest (OI) declined by roughly $37M, suggesting traders closed positions rather than adding leverage. Funding rates also flipped negative, a structure where shorts pay longs and sustain downside pressure. Spot flows were mixed but leaned toward distribution. Taker Buy Volume rose, indicating pockets of demand, while Exchange Netflows showed more AVAX moving onto exchanges than leaving. CryptoQuant data cited net inflows of about $2.26M alongside ~$20.46M of AVAX sold after the announcement—suggesting investors positioned ahead of the news and exited when it landed. Key takeaway for traders: the Broadridge headline did not translate into price support. AVAX weakness appears driven by TVL deterioration and bearish derivatives positioning, making rallies potentially sellable until on-chain activity stabilizes.