Avalanche sits among the top-30 cryptos by market cap with a value of close to $3.64 billion. It’s in the news today after it crossed the 1.60 billion mark for total transactions on the mainnet since launching in September 2020. This new milestone was achieved despite a bearish crypto market.
However, that’s not the entire story. Especially since the three-month average for transactions seemed to be far below the volume it commanded in its initial days.
At press time, the number was well below 1 million, while the volume 6 years ago when it launched was above 3 million.
Worth noting, however, that in the last 24 hours, its network fees spiked by 30%, indicating network congestion. Hence, the question: What’s behind the uptick in the number of transactions?
AVAX Spot, Futures traders defy broader market trend
On-chain data from CoinGlass revealed that AVAX traders have been defying the market downtrend. Both Spot and Futures markets were net buying at 51.60%, with a bullish divergence confirmed on the 15-minute chart.
The Futures CVD was at $2.39 million, while that of Spot was at $462K. This implied that the derivatives market was more optimistic than the spot one.
These traders could be buying the dip since AVAX has been on a downtrend over the past week. In fact, it fell from around $12 to $8, a loss equivalent to about 32%.
At press time, its mindshare was also down 10%, with sentiment from top influencers turning neutral.
Understanding Avalanche’s real-world financial activity
The existing optimism could be attributed to the ecosystem growth, especially on the real-world front. It’s growing exponentially on a quarter-on-quarter basis, especially when the third and second quarters were compared.
For instance, Avalanche’s DEX volume doubled to about $5.33 billion, indicating heightened trading activity both on buys and sells.
Additionally, RWAs on C-Chain reached $1.22 billion, with the tokenized treasuries leading with a growth of 14% to reach $545 million. At the same time, Dinari stock purchases jumped by over 34%, equivalent to $9 million. These figures confirmed AVAX’s growing RWA financial activity.
Finally, card spending surged by 74%, which totaled more than $10 million. Similarly, on-chain credit grew by 34%, reaching $37.40 million. Both implied that traders have been using Avalanche for payments.
Despite such strong activity, if the higher high at $7.90 is lost as support, AVAX could slide to $6.85 or subsequently test the psychological level at $6. However, if capital flows into the chain through RWA, the downside risk could be managed.
Final Summary
- Avalanche hit a milestone of over 1.60 billion transactions as Spot and Futures buyers returned.
- AVAX’s price has been falling over the past week, but RWA financial activity is reason for optimism.