Avalanche (AVAX) appears to be one of the few major cryptocurrencies that has been able to overcome the recent cryptocurrency decline, posting a phenomenal 79% weekly gain while other cryptocurrencies fell.
Some analysts believe this is due to recent partnership announcements and increased trading volume and total value fixation, while others claim there is a change in the way altcoins are valued.
Bitcoin (BTC) and Ethereum (ETH) plunged 6% on December 11, while AVAX rose 13.6% in the past 24 hours, according to CoinGecko data.
Ryan Mcmillin, chief investment officer at Merkle Tree Capital, told Cointelegraph that much of the excitement around AVAX can be attributed to traditional financial giants JPMorgan and Citi, which have partnered with the Avalanche Foundation on a real-world asset tokenization initiative.
“More recently, AVAX’s strength appears to have been linked to a surge in daily trading from around $200,000 to $4.5 million over the past few days. Daily active addresses also saw a clear upward trend,” Millin added.
The Avalanche network’s total value locked (TVL) has increased 82% from $490 million to $894 million in the past three months since September 12, while AVAX token trading volume surged 2,436% over the same period, DefiLlama data shows. appeared in
Henrik Andersson, Apollo Crypto’s chief investment officer, said in an interview with Cointelegraph that broader market standards had previously underestimated AVAX.
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“A few weeks ago, Avalanche’s TVL was more than Solana’s, for example, with a quarter of its market capitalization,” Andersson said. “TVL is still high, but the market capitalization is now half that of Solana.”
“We believe that in 2024, some altcoins will enter the market where they can outperform Bitcoin,” he added. He cited Immutable (IMX) and Synethix (SNX) as tokens that have outperformed Bitcoin since 2022.
In a December 11 Cryptocurrency Fund Flows report, James Butterfill, head of research at CoinShares, said that while major cryptocurrencies such as Bitcoin and Ethereum have suffered sharp price declines this week, Solana (SOL) and Avalanche have each fallen by $3 million. and showed an inflow of $2 million, with the remainder remaining. “Clear favorite” in the altcoin sector.
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