AVAX Price Boost Could Be From This Department, But Its TVL Sings A Different Tune
November 14 2023 - 7:44AM
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Surging to a notable six-month peak of $20 in the previous week,
Avalanche (AVAX) has attracted substantial investor attention,
prompting an exploration of the fundamental drivers behind this
impressive upward price movement. Some analysis have singled out
the resurgence of GameFi within the Avalanche ecosystem as a
pivotal catalyst potentially fueling additional gains in AVAX.
Specifically, on Monday, AVAX revisited the $20 threshold, marking
a significant milestone as this price level hadn’t been seen since
April 2023. Related Reading: Solana (SOL) Shines 40% Toward $60 As
Whales Make Big Moves The GameFi Surge On Avalanche: Unveiling
Growth Potential The GameFi revival as a major growth catalyst
suggests that the intersection of decentralized finance and gaming
applications within the Avalanche network holds considerable
promise. As the market absorbs this resurgence, questions naturally
arise about the sustainability of the bullish momentum and the
underlying factors contributing to the recent breakout in AVAX’s
price. In light of these developments, a deeper analysis is
warranted to understand the potential extent to which the bulls can
propel this rally and the broader implications of the GameFi
revival within the context of the Avalanche ecosystem. AVAX market
cap currently at $6 billion. Chart: TradingView.com As optimism
permeated the cryptocurrency sector, the prosperity of ecosystems
experienced a widespread upswing across diverse networks. Avalanche
(AVAX) seamlessly joined this trend, affirming its participation in
the prevailing positive sentiment within the crypto space. This
collective ascent underscored the buoyancy of various networks,
including AVAX, as they navigated the evolving landscape of the
digital asset market. Meanwhile, TraderJoe, a prominent
decentralized exchange (DEX) on the Avalanche network, has
witnessed an impressive growth, marked by a significant surge in
trading volume and fees collected over a specific period. Watching
@TraderJoe_xyz as a dual play both on Avalanche and Arbitrum. –
Trading volume +112% – Fees +146% – Supply-side fees rose to
$138,000 – Trading Volume by chain: 74% Avalanche/ 25% Arbitrum
Trader Joe enjoys the volume from both narratives.
pic.twitter.com/0BkP3zzU7V — Emperor Osmo🧪 (@Flowslikeosmo)
November 13, 2023 The trading volume experienced an increase of
more than 100%, indicating a substantial uptick in user activity on
the platform. Simultaneously, fees generated from trading activity
soared by an impressive 146%, reaching a substantial sum of nearly
$140,000. At the time of writing, AVAX was trading at $17.03, down
6.5% in the last 24 hours, and tallied a solid 32.4% in the last
seven days, data from Coingecko shows. This surge in supply-side
fees underscores the increasing utilization of the TraderJoe
platform within the Avalanche network. The distribution of
trading activity reveals that a substantial majority, accounting
for 74%, occurred on the Avalanche chain, emphasizing the
platform’s popularity within the Avalanche network. The
remaining 25% of trading took place on Arbitrum [ARB]. Avalanche
Network Activity Tells A Different Story As this developed, another
interesting aspect has been observed in the network: In the last
quarter, activity on the Avalanche network experienced a downturn,
witnessing a decline in both transaction volume and active
addresses on the prominent “C-Chain” compared to the preceding
quarter of 2023. Source: Nansen Data sourced from DeFi Llama
indicates a nearly 30% slump in Avalanche’s total value locked
(TVL) during Q3, plummeting from $706 million to $512 million.
Although there has been a subsequent 10% rebound in TVL to $564
million, daily transactions continue to linger at a lower figure,
standing at 232,000. Source: Nansen AVAX Price In Peril? Nansen’s
data reveals that daily active users reached a peak of 86,000 in
Q3, showcasing a decrease from the previous quarter’s 117,000. The
daily active transactions also saw a drop, ranging from 136,000 to
504,000, a significant shift from the previous range of 200,000 to
550,000. Notably, on October 15, this metric hit a low of 110,000.
While these metrics don’t bode well for the immediate past, whether
this decline imperils AVAX’s price trajectory remains a complex
question. The broader market sentiment and the network’s
adaptability to emerging trends, especially in the dynamic realm of
decentralized finance, will likely play pivotal roles in
determining the future of AVAX’s price. Related Reading: Boom!
Cronos Unleashes 57% Weekend Explosion, Beating All In The Top 100
Crypto Ranking (This site’s content should not be construed as
investment advice. Investing involves risk. When you invest, your
capital is subject to risk). Featured image from iStock
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