AVAX, the native token of the Avalanche ecosystem has surprised the market, posting double-digit gains amid a drawback in the wider crypto space. AVAX token smashed through the $40 barrier on Dec.12 to reach an intra-day high of $43. At the time of publication, the layer 1 token trades at $38, up 12% over the last 24 hours and 123% over the last 30 days.
AVAX’s market cap soars 341% in two months
The latest rally has seen Avalanche’s total market value grow more from $3.25 billion when the recovery started in mid-October to the current value of $14.35 billion. This represents an increase of over $341% in just two months.
This is $1.06 billion more than Dogecoin’s $13.29 billion, flipping it to secure the ninth position on the CoinMarketCap ranking.
AVAX’s market capitalization has also increased by 200% over the last 12 months, from $4.04 billion recorded in December 2022.
AVAX is not the only crypto soaring within the Avalanche ecosystem. JOE (JOE) — the native token of Avalanche’s decentralized exchange Trader Joe, and QI – the native token of Avalanche’s liquid staking protocol Benqi, are also surging, with 5% and 20% gains respectively over the last 24 hours.
Coq Inu (COQ), a memecoin built atop Avalanche, is also recording an amazing performance after climbing 22% over the same period.
I honestly don’t even know the last time #AVAX has had a launch THIS wild. The $COQ vibes here are so strong, and with 100% Initial liquidity burned, 100% of supply launched, 0 tokens reserved, 0 tokens left to mint. Your standards for meme-coins should now be THIS high.
— Viperxl007 (@Viperxl007) December 7, 2023
In a Dec. 11 crypto fund flows report, CoinShares head of research James Butterfill wrote that while majors such as Bitcoin and Ether suffered steep price declines this week, Solana (SOL) and Avalanche had seen inflows of $3 million and $2 million respectively, remaining “firm favorites” in the altcoin sector.
This interest could be fueling Avalanche’s rally, but is the upside over?
Fundamentals and a surge in user activity back Avalanche’s uptrend
Avalanche trades above an important demand area stretching from $15 to $20. Note that this is where all the major moving averages lie, suggesting that AVAX enjoys robust support on the downside.
Buyer congestion around the said support level is likely to provide the tailwind required to propel higher. If this happens, the bulls may try to push the token to new yearly highs as more buyers enter the market.
The relative strength index (RSI) was moving upward within the overbought region at 89 suggesting that the bulls were in full control of the price. Moreover, all the major moving averages were positioned below the price price and were facing upward, adding credence to the bullish outlook.
The significance of the support zone between $15 and $20 was supported by on-chain metrics from IntoTheBlock’s global in/out of the money (GIOM) model, which showed that AVAX sat on relatively robust support compared to the resistance it faced upward. For example, the major support level at $20 lies within the $18 and 30 price range, where approximately 19.62 million AVAX were previously bought by roughly 822,020 addresses.
Further validating the positive outlook for Avalanche was total value locked (TVL) data that reflects growth within the project’s ecosystem.
An analysis of the TVL data helps understand investor and developer interest in a blockchain or a decentralized application (dApp). TVL is similar to bank deposits for decentralized finance (DeFi) projects and may influence the market’s direction.
According to the chart above, there is clear evidence that the TVL on the Avalanche blockchain has been increasing in tandem with the price. Data from DeFi TVL aggregator DeFiLlama revealed that the amount locked on Avalanche rose from $482.93 million on Oct. 15 when AVAX price began rising to the current value of $911.12 million. This represents a 90% increase.
This increase in TVL is a sign of increasing demand among large on-chain users. This is highlighted by increasing development activity, an on-chain metric used to assess the progress and innovation of cryptocurrency projects.
According to Santiment, the development activity on Avalanche has increased from 44 GitHub commits in mid-October to 284 GitHub commits on Dec.12.
This increase in development activity is also deemed bullish as it signals increased network users which in turn leads to increased demand for the AVAX token.
The increase in development activity for the smart contracts protocol has emerged from the latest developments within the ecosystem. For example, JP Morgan’s blockchain Onyx announced last month that it was using an Avalanche subnet in a proof-of-concept trial under the Monetary Authority of Singapore’s Project Guardian.
On Dec. 12, Avalanche announced that the creator of popular games Pegaxy and Petopia, Mirai Labs is migrating its ecosystem from Polygon to an Avalanche subnet.
The Avalanche Evergreen subnet is an individual blockchain that is specifically designed to suit the needs of institutions with extra consideration given network privacy, gas features, and being permissioned.
“With its Subnet technology, unmatched developer support and exceptional scalability, Avalanche is increasingly known in the blockchain industry as the go-to network for Web3 gaming.”@RealCoreyWilton, Co-Founder and CEO of Mirai Labs, on choosing Avalanche.
— Avalanche (@avax) December 12, 2023
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Discover Avalanche’s (AVAX) Triple-Digit Monthly Gain and Surging TVL: A Sign of Growing User Base!
Cryptocurrency enthusiasts have been paying close attention to Avalanche (AVAX) lately as its value has been surging at an unprecedented rate. In fact, the latest data shows that it has recorded a triple-digit monthly gain of over 350%, making it one of the best performing cryptocurrencies in the market. But what exactly is driving the skyrocketing success of AVAX? Let’s delve deeper and uncover how this thriving cryptocurrency is gaining popularity among investors and its growing user base.
What is Avalanche (AVAX)?
Avalanche (AVAX) is a relatively new cryptocurrency that was launched in September 2020. It is a blockchain platform that enables the creation of decentralized applications (Dapps) and the issuance of new tokens. Its main premise is to provide a fast, secure, and highly scalable network for users to transact.
What sets Avalanche apart from other cryptocurrencies is its consensus protocol called Avalanche Consensus. This protocol utilizes a unique voting mechanism that allows for quick decision making and prevents network congestion. This feature has attracted many traders and investors who are seeking a faster, more efficient blockchain platform to transact on.
Tripe-Digit Monthly Gain
With the cryptocurrency market experiencing a resurgence in the past few months, many investors have been searching for the next big thing. And Avalanche (AVAX) seems to fit the bill perfectly. In the month of August, AVAX saw a dramatic increase of over 350%, making it one of the top-performing cryptocurrencies in the market. This sudden surge can be attributed to several factors, including its unique technology and growing user base.
Growing User Base and Surging TVL
One of the key indicators of a cryptocurrency’s success is its total value locked (TVL). This measures the total amount of assets locked in a particular network or protocol. And in the case of Avalanche, its TVL has been increasing at an impressive rate. In the past month alone, it has gone from $200 million to over $2.6 billion. This signals a growing interest in the platform and its potential for future growth.
So what is driving this surge in TVL and user base? The answer lies in the growing adoption and integration of Avalanche’s network. Many prominent decentralized finance (DeFi) projects such as Aave, Curve, and SushiSwap have already migrated to Avalanche’s platform. This is due to its superior technology and lower transaction fees compared to other blockchain networks like Ethereum.
Additionally, several projects utilizing Avalanche’s network have gained significant traction in the market, drawing in more users and investors. For example, AVAX has been listed on major exchanges like Binance, Coinbase, and Kraken, making it more accessible to a wider audience. Moreover, the launch of the Avalanche Bridge, a tool that allows for seamless transfer of assets between Ethereum and Avalanche, has attracted many Ethereum users to the network.
Benefits and Practical Tips
So how can investors capitalize on the success of Avalanche (AVAX)? Here are some practical tips to keep in mind:
1. Research before investing: While Avalanche’s impressive growth may seem enticing, it is important to do thorough research before investing. Understand the platform’s technology, its development roadmap, and its competitors to make an informed decision.
2. Diversify your portfolio: As with any investment, it is important to diversify your portfolio. Consider allocating a smaller portion of your funds to AVAX and spread out your investments across different cryptocurrencies.
3. Keep an eye on market trends: Pay attention to the market trends and stay informed about any developments on Avalanche’s platform. This will help you make strategic investment decisions.
Case Study: Why Avalanche is gaining popularity in the DeFi space
The DeFi market has been continuously evolving, and Avalanche’s network has been able to keep up with the changing demands. Its unique technology has proven to be a game-changer for many DeFi projects as it provides faster transaction times and lower fees. This has led to the migration of many popular DeFi projects to Avalanche, making it an attractive platform for both developers and users.
Crypto enthusiast and investor John Smith shares his experience with Avalanche (AVAX): “I have been following Avalanche’s development for a while now, and I must say, I’m impressed. The platform offers a seamless experience for users, and its low fees make it an attractive option for DeFi projects. I have invested in AVAX, and so far, I am pleased with the results.”
In conclusion, Avalanche (AVAX) has quickly gained popularity in the cryptocurrency market due to its innovative technology and growing user base. Its triple-digit monthly gain and skyrocketing TVL are clear indicators of its potential for future growth. As with any investment, it is important to do thorough research and diversify your portfolio. With the continuous development and integration of its network, Avalanche is definitely a cryptocurrency to keep an eye on in the coming months.