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- The Avalanche’s daily active addresses and TVL have increased dramatically over the past month.
- AVAX is up 30% over the past seven days, but the indicator has turned downward.
Avalanche (AVAX) There has been a huge spike in fees generated recently, reflecting high usage.
While this may seem like a positive sign only for blockchain, it could have broader implications for the ecosystem, as historically such events have always been accompanied by price increases.
What is the avalanche doing?
Renowned DeFi researcher Thor Hartvigsen recently posted a tweet announcing a major development in the Avalanche ecosystem. The blockchain has recently seen a surge in the fees it generates, with its valuation reaching $3.5 million.
yesterday @avax On-chain activity resulted in $3.5 million in fees.
This is almost double the all-time high during the previous bull market.
Active users have increased approximately 2.5x in the past month.
Red Coin Good Coin?🔺 pic.twitter.com/1DJiAh1lsY
— Thor⚡️Hartvigsen (@ThorHartvigsen) December 16, 2023
In addition, AMBCrypto’s Artemis analysis data Daily active addresses for both Avalanche have also seen a spike in the past month. A similar upward trend has been seen in terms of TVL, signifying the growth of the DeFi ecosystem.
Source: Artemis
If you think about history, the last time AvexFees have soared and prices have also strengthened. The last such event occurred in January-April 2023, during which time prices clearly rose.
This time, the fee increase was twice as large as before.
Source: Santiment
Will AVAX maintain its upward trend?
This again saw an increase in fees, as AVAX was one of the only top coins to record double-digit returns. According to CoinMarketCapAVAX is up more than 30% in the past seven days alone.
At the time of writing, it was trading at $42.30, with a market capitalization of over $15.57 billion.
However, Avalanche’s growth has slowed, with the price rising only 1% in the last 24 hours. Therefore, AMBCrypto checked the token’s daily chart to see what to expect next.
According to our analysis, AvexThe MACD continued to support the bullish trend. Chaikin Money Flow (CMF) is also well above the neutral line.
Nonetheless, the Funds Flow Index (MFI) was in overbought territory, which could cause the token price to decline in the future.
Additionally, Avalanche’s price has reached the upper limit of the Bollinger Bands. This means that selling pressure on the token will increase and the price may fall as a result.
Source: TradingView
Realistic or not, the following is Market capitalization of AVAX in BTC
Avalanche has also recently seen a decline in social metrics, as evidenced by the decline in social metrics at the time of writing the report.
Moreover, despite the enormous increase in value, Avex‘s Weighted Sentiment fell sharply. This means that negative sentiment is dominant in the market.
Source: Santiment