Avalanche (AVAX) just passed a critical milestone, demonstrating the cryptocurrency’s rising growth and use among the community. Token Terminal reports that AVAX’s monthly active user base has reached an all-time high, demonstrating the platform’s growing popularity. Furthermore, Artemis recorded increased daily active addresses, confirming AVAX’s growing user base.
Despite these encouraging advances, AVAX’s C-chain saw an almost 30% drop in weekly transactions, which directly influenced the network’s overall gas use, resulting in a modest fall in the previous week.
Surprisingly, AVAX’s NFT ecosystem expanded significantly within the same period. According to Santiment’s data, AVAX’s overall NFT deal count and trade volume denominated in USD have increased significantly, a positive indicator for the platform’s NFT aficionados.
The top gainers in Total Value Locked (TVL) during the last week were recognized by AVAX Daily, a popular source of information for AVAX fans. According to the tweet, the top three apps were Kalmy App, SushiSwap, and WOOFi Swap. Furthermore, Trader Joe Lend and Kyber Swap landed in the top five. However, Artemis data shows AVAX’s TVL has declined over the previous 30 days.
Unfortunately, Avalanche investors encountered difficulties on May 31, 2023, when the token’s price fell precipitously. AVAX’s price has dropped by more than 3% in the previous 24 hours, according to CoinMarketCap statistics. AVAX was trading at $14.11 when writing, with a market capitalization of more than $4.8 billion.
Furthermore, AVAX’s one-week price volatility increased, indicating the possibility of significant price drops in the near future. Furthermore, AVAX’s social dominance experienced a blow, despite the token’s ongoing strong demand in the derivatives market, indicating its strength in that area.
Avalanche’s market indications were largely pessimistic. For example, the 20-day EMA held below the 55-day EMA, indicating a classic bearish indicator. The Relative Strength Index (RSI) was also significantly below neutral, indicating a lack of bullish momentum. Furthermore, AVAX’s Money Flow Index (MFI) followed a similar downward pattern, raising the prospect of further price declines in the coming days.
Despite hurdles, Avalanche’s growing popularity and use among crypto aficionados propels its ecosystem further. Avalanche intends to secure its place in the ever-changing blockchain world by focusing on resolving market dynamics and nurturing its increasing user base.