Avalanche (AVAX) Records 79% Surge Amid Broad Crypto Market Decline
Summary:
Despite the recent downturn in the cryptocurrency market, Avalanche (AVAX) has experienced a significant 79% surge within the past week. Analysts attribute this growth to recent partnerships, a rise in trading volumes, and an increased total value. On December 11, whilst Bitcoin (BTC) and Ether (ETH) saw a drop, AVAX gained 13.6%. Key financial institutions, JPMorgan and Citi, have partnered with the Avalanche Foundation, a move that has contributed to a recent spike in daily transactions. The Avalanche network’s total value locked (TVL) has risen by 82%, and the trading volume for its token has bloated by 2436% within the past three months since September 12.
Avalanche (AVAX), a significant player in the cryptocurrency market, stands out amid the recent downturn in the crypto industry, recording a notable 79% surge in the past week as others recede. Analysts suggest that recent partnerships announcements, increased trading volumes and total value have contributed to this, and are reflecting a change in the valuation of altcoins. On December 11, Bitcoin (BTC) and Ether (ETH) dropped by 6%, while AVAX climbed 13.6% within 24 hours, according to CoinGecko. In the last seven days, Avalanche has risen by 79%. Source: TradingView
Ryan Mcmillin, Chief Investment Officer at Merkle Tree Capital, asserts to Cointelegraph that the growing interest in AVAX can be attributed partly to prominent financial institutions JPMorgan and Citi forging collaborations with the Avalanche Foundation for their Real-World Asset (RWA) tokenization plans. Mcmillin further adds that the recent spike in daily transactions from about $200,000 to $4.5 million and an upward trajectory in daily active addresses might have lent strength to AVAX.
Since September 12, the Total Value Locked (TVL) in the Avalanche network has risen by 82%, amassing from $490 million to $894 million. During the same timeframe, the trading volume for AVAX token bloated by 2436%, as revealed by DefiLlama data.
Apollo Crypto Chief Investment Officer, Henrik Andersson, communicated to Cointelegraph that market norms in the past had undervalued AVAX. He further declared that Avalanche, a few weeks back, surpassed Solana in terms of TVL with only a quarter of its market cap. Currently, the TVL has risen further, and the market cap of Avalanche is half of Solana’s.
Andersson believes that in 2024 we might see some altcoins outperforming Bitcoin and mentions Immutable (IMX) and Synethix (SNX) as tokens that have already outpaced Bitcoin since 2022.
On December 11, CoinShares Head of Research, James Butterfill stated in a crypto fund flows report that while significant cryptocurrencies like Bitcoin and Ether faced severe price drops this week, Solana (SOL) and Avalanche were recording inflows of $3 million and $2 million respectively, thereby continuing to be "solid favorites" in the altcoin segment. Magazine: The impact of crypto on the human mind— a growing trend of substance abuse among crypto traders.
Published At
12/12/2023 6:52:39 AM
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