- Avalanche saw a spike in growth in terms of activity due to a spike in NFT demand and dApp usage.
- The price of AVAX fell and volatility increased.
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 about the future of AVAX, Avalanche’s native cryptocurrency.
Read Avalanches [AVAX] Price forecast 2023-2024
An avalanche of users
Token Terminal’s data showed that Avalanche was steadily on its way to accumulating one million monthly active users on the network. The rising activity indicates a growing user base and increased use 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 saw a remarkable increase of 37.5% over the past week. It’s worth noting, however, that interest in blue-chip NFTs like Roostr and MONKEEZ declined, suggesting a shift in preferences among NFT enthusiasts.
Source: AVAXNFTSTATS
In conjunction with NFTs, dApps on the Avalanche network also played a critical role in increasing activity on the protocol.
In particular, the DeFi dApp protocol Benqi witnessed a 3.11% increase in unique active wallets, leading to a subsequent surge in transactions on the network. This highlights the growing ecosystem of decentralized DeFi applications on Avalanche.
Source: Dapp Radar
Despite the increased activity generated by dApps and NFTs, Avalanche has experienced a drop in revenue over the past month, with a notable drop of 14.1%. This decline can be attributed to several factors, such as changing market dynamics or evolving user behavior.
Source: Token Terminal
Realistic or not, here is AVAX’s market cap in terms of BTC
State of the token
In the past month, Avalanche’s price and volume have been on a downward trend. Coupled with that, AVAX’s volatility has increased significantly. This spike in volatility could prevent risk averse users from purchasing AVAX due to increasing price swings.
Source: Sentiment
Avalanche’s new partnerships with Circle could improve the status of the token and attract new users to the protocol. The partnership ensures the availability of EUROC, a stablecoin issued by Circle. The issuance of EUROC on Avalanche could also help expand the protocol in the DeFi sector in the future.
