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- AVAX’s rally occurred amid a market-wide price correction.
- Whale trading has increased significantly over the past two weeks.
Defying the sharp decline in the broader market, Avalanche (AVAX) has surged nearly 16% in the past 24 hours, breaking into the list of top 10 cryptocurrencies by market capitalization. AVAX rebounded above $40 for the first time since May 2022, pushing its weekly gain to 84% and doubling its value since early 2023.
AVAX moves in the other direction.
Here, it is interesting to observe the relationship between market indicators such as AVAX and Bitcoin (BTC), with Kingcoin witnessing a price correction upon profit booking. In fact, AMBCrypto examined data from Hyblock Capital and found that the two assets are negatively correlated, although not very strongly.
Simply put, AVAX moved in the opposite direction from BTC last week.
Source: Hiblock Capital
A sign of a coming uptrend?
The price pump has caught the attention of whale investors. According to IntoTheBlock, there were nearly 1000 transactions worth $100,000 or more last week, with significant expansion observed over the past two weeks.
Whales are considered trendsetters in the market in that once they start purchasing an asset, they encourage retail investors to follow suit. This increases demand for assets, creating favorable conditions for a bull market.
Source: IntoTheBlock
Another compelling signal revealed was the increase in on-chain traffic. Consider this: AMBCrypto also found that Avalanche’s daily active users soared to an all-time high (ATH) of 152,286 on December 11.
Source: Avalanche
Lastly, on-chain transactions have seen a rapid increase over the past three weeks. After peaking at more than 7 million on November 22, the number of daily users increased to more than 5.6 million over the weekend.
Trader Joe’s Increases Avalanche
This surge has been particularly fueled by growing interest in some projects in the Avalanche ecosystem. Trader Joe’s (JOE), the largest decentralized exchange (DEX) on the network, raised $1.23 million in fees on December 11, the second-highest year-over-year fees.
How much is 1,10,100 AVAX worth today?
For example, according to DeFiLlama, DEXs recorded $1.46 billion worth of transactions in the last seven days, a growth of 191%. This exponential growth has catapulted Avalanche into the top five chains in terms of DEX trading volume.
Source: DeFiLlama