- Despite the hike in popularity, Avalanche’s daily active addresses and transactions declined
- A few metrics suggested a price uptick but the market indicators remained bearish on AVAX
Avalanche’s [AVAX] popularity skyrocketed last week as most of its social metrics surged by over 100%. This was interesting to see, as nothing major happened in the blockchain’s ecosystem in the past few days that could have potentially initiated this uptrend.
To add to it, the blockchain’s native token’s price action was also not very volatile. However, AVAX did make a recent announcement, which can fuel further growth in its popularity.
Realistic or not, here’s AVAX market cap in BTC‘s terms
Avalanche’s popularity is on the rise
AVAX Daily, a popular Twitter handle that posts updates related to the Avalanche ecosystem, recently posted a tweet highlighting the blockchain’ performance on the social front.
As per the tweet, AVAX’s social mentions shot up by over 150% and reached 1.44k last week. Its social engagement, on the other hand, surged by more than 200% and reached 60.4 million, which was a substantial increase.
Avalanche Weekly Social Signals
Most Influential Projects@MoonbeamNetwork@ActaFi@AvaxArrogant@DeFiKingdoms
Influencers of the Week@AltCryptoGems@cryptojack@kyle_chasse@TeddyCleps
Source: @LunarCrush#AVAX $AVAX #Avalanche pic.twitter.com/8QvPQxGI4c
— AVAX Daily
Additionally, its social dominance and social contributors rose by 157% and 28%, respectively. The surprising fact was that nothing major happened in its ecosystem that could have caused this surge. Rather, the network’s fundamentals declined.
As per Artemis’ data, AVAX’s daily active users and daily transactions declined, suggesting less usage of the blockchain.
Source: Artemis
However, an interesting development did happen of late that had the potential to fuel further growth. AVAX Daily revealed that Uniswap [UNI] went live on Avalanche. With the new launch, users can now swap Avalanche tokens on Uniswap.
Good new
Swap Avalanche tokens on Uniswap now: https://t.co/bwQuP1Frb5#Avalanche #AVAX pic.twitter.com/1zIwJreHPg
— AVAX Daily
Will Avalanche’s popularity affect AVAX?
Last week was not the best for AVAX investors, as the token’s price only moved marginally. According to CoinMarketCap, AVAX’s price declined by over 1% in the last 24 hours. At press time, it was trading at $13.10 with a market cap of over $4.5 billion.
Its popularity might have had an impact on its metrics, as evident from its green Binance funding rate. This reflected its demand in the derivatives market. Interestingly, AVAX’s open interest also declined, which can change the declining price trend in the coming days.
Source: Santiment
Read Avalanche’s [AVAX] Price Prediction 2023-24
Though the aforementioned metrics were bullish, AVAX‘s daily chart told a different story. The 20-day Exponential Moving Average (EMA) was below the 55-day EMA, which is a bearish signal.
Avalanche’s Relative Strength Index (RSI) took a sideways path under the neutral mark of 0. Nonetheless, AVAX’s Chaikin Money Flow (CMF) registered an uptick, giving hope for a price rise in the days to follow.
Source: TradingView
