- Avalanche observed a spike in growth in terms of activity due to spike in NFT demand and dApp usage.
- AVAX price declined and volatility rose.
Recent data indicated a significant increase in activity on Avalanche’s [AVAX] C-chain, the primary chain responsible for transaction validation and network consensus. As the network gains traction, questions arise regarding the future of AVAX, the native cryptocurrency of Avalanche.
Read Avalanche’s [AVAX] Price Prediction 2023-2024
An Avalanche of users
Token Terminal’s data revealed that Avalanche was steadily progressing towards amassing one million monthly active users on the network. The rising activity indicates a growing user base and increasing utilization of the platform’s capabilities.
Source: Token Terminal
One reason for the high activity on the Avalanche network was the rising demand for its NFTs.
According to AVAXNFTSTATS, sales on the Avalanche NFT network experienced a notable surge of 37.5% in the past week. However, it’s worth noting that interest in blue-chip NFTs like Roostr and MONKEEZ declined, suggesting a shift in preferences among NFT enthusiasts.
Source: AVAXNFTSTATS
Coupled with NFTs, dApps on the Avalanche network also played a vital role in increasing activity on the protocol.
Notably, DeFi dApp protocol Benqi witnessed a 3.11% increase in unique active wallets, leading to a subsequent rise in the number of transactions conducted on the network. This highlights the expanding ecosystem of DeFi decentralized applications on Avalanche.
Source: Dapp Radar
Despite the heightened activity generated by dApps and NFTs, Avalanche has experienced a decline in revenue over the past month, with a notable drop of 14.1%. This decline could be attributed to various factors, such as shifting market dynamics or evolving user behavior.
Source: Token Terminal
Realistic or not, here’s AVAX market cap in BTC’s terms
State of the token
In the last month, Avalanche’s price and volume exhibited a downward trend. Coupled with that, the volatility of AVAX has increased materially. This spike in volatility could stop risk averse users from buying AVAX due to increasing price fluctuations.
Source: Santiment
Avalanche’s new collaborations with Circle could improve the state of the token and attract new users to the protocol. The collaboration ensures the availability of EUROC, a stablecoin issued by Circle. The issuance of EUROC on Avalanche could also help the protocol expand in the DeFi sector, going forward.
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