The Layer 1 blockchain protocol Avalanche (AVAX) is gaining traction as daily active users of AVAX have increased significantly, more than tripling from the average witnessed over the previous year. According to data on Avalanche’s official website, there are presently 113,981 people who own AVAX.
The number of AVAX active addresses peaked on June 14, with 141,680 active addresses that day. AVAX is currently trading at $12.86, according to the most recent information from CoinMarketCap, with a 24-hour trading volume of $163,261,847. AVAX has experienced a rise of 0.30% over the last day.
According to crypto market analytics company Messari, the majority of AVAX’s interaction during this time has revolved around decentralized exchanges, notably the Web3 protocol Galxe and retail-focused DEX Trader Joe.
“Avalanche aims to revitalize its network and foster a stronger DeFi ecosystem,” wrote Messari.
The premier platform for creating web3 communities, Galxe (GAL), revealed in March that it had begun working with Ava Labs, a key architect of the Avalanche (AVAX) blockchain, to integrate its own On-chain Achievement Token (OAT) into the Avalanche ecosystem.
Avalanche is the smart contract platform with the shortest time-to-finality, according to Galche. Galxe is a top 10 dApp across all blockchains, with more than 54 million Galxe ID users and over 1,900 ecosystem partners.
With the introduction of the Avalanche OAT, Avalanche became one of Galxe’s trusted ecosystem partners, joining Polygon, Optimism, Arbitrum, BNB Chain, and others. With the use of reward-based loyalty programs, Avalanche dApps can connect with millions of highly engaged web3 users thanks to this simple, no-code solution.
The previous few days have seen a sharp increase in interest in Bitcoin. Due to this increase in demand, the price of Bitcoin has reached $30,000. It was noted, though, that the Avalanche protocol also experienced a surge in activity as a result of interest in BTC.
A wrapped version of Bitcoin is known as BTC.b on the Avalanche blockchain. On a different network, wrapped tokens stand in for other assets, in this example, Bitcoin.
BTC.b (wrapped Bitcoin) demand on Avalanche directly rises in response to rising BTC demand. This happens because BTC.b gives consumers simple access to Bitcoin on the Avalanche blockchain, enabling them to move their assets and engage with the Avalanche ecosystem.
Avalanche (AVAX), a high-speed and scalable blockchain project that enabled unconstrained innovation, rose quickly through the ranks to become a well-known cryptocurrency.
However, AVAX saw a dramatic slump in 2023 as a result of many macroeconomic factors, which sharply reduced its price.
The launch of AvaGPT is among recent Avalanche network innovations. A chatbot with AI capabilities, demonstrating the platform’s commitment to cutting-edge technology. In addition, as part of their continued efforts to expand the network’s capabilities, the Avalanche team introduced HyperSDK and Avalanche Warp Messaging (AWM).
From $13.93 billion in December 2021 to roughly $1.4 billion today, Avalanche’s TVL has decreased.
Since bulls encountered resistance on Sunday near the $13.70 mark, AVAX has been trading lower throughout the previous week. As buyers try to fend off the bears close to $12.50, the cryptocurrency token has lost 3% over the last day and 5% over the last seven days.
The price chart below shows how AVAX is vying for upward momentum as Bitcoin (BTC) bulls attempt to halt bearish advances close to the pivotal $30k barrier. A new BTC price increase may give altcoins some vigor and allow AVAX/USD to retake the $14 region.
That might cause Avalanche prices to rise to the peak they reached in April when bulls pushed above $20. A move of that magnitude would be a 100% increase from the $10 lows of June.
On the daily chart, however, the RSI is below the 50-point level, indicating that the purchasing pressure that propelled AVAX from $11.45 to almost $13.70 has subsided.
Additionally, the MACD shows weakness on the buyers’ side. When the indications trend upward, it will be easier to see possible gains; when they turn downward, it could mean a return to a crucial support zone between $11.20 and $9.50.