Journalist
Posted:
- AVAX’s rally comes amid a market-wide price correction.
- Whale transactions have increased significantly over the past two weeks.
Avalanche is defying the sharp decline in the broader market [AVAX] rose almost 16% in the last 24 hours to enter the top ten cryptos by market capitalization. AVAX rose above $40 for the first time since May 2022, bringing its weekly gain to 84% and doubling its value since early 2023.
AVAX moves in the other direction
Here it is interesting to observe the relationship between AVAX and market barometers such as Bitcoin [BTC], with the king coin witnessing price corrections while booking profits. AMBCrypto examined Hyblock Capital’s data and found that the two assets were negatively correlated, although not very strongly.
Simply put, AVAX moved in the opposite direction to BTC last week.
Source: Hyblock Capital
Signs of an upcoming bull run?
The price pump caught the attention of whale investors. According to InTheBlokLast week, transactions worth over $100,000 reached almost 1000, with significant expansion seen over the past two weeks.
Whales are seen as market trendsetters in the sense that when they start buying an asset, it encourages retail investors to follow suit. Therefore, the demand for the asset multiplies, creating favorable conditions for a bull run.
Source: IntoTheBlock
Another compelling signal that emerged was the increase in traffic on the chain. Think about this: AMBCrypto also found that Avalanche’s daily active users rose to an all-time high (ATH) of 152,286 on December 11.
Source: Avalanche
Finally, on-chain transactions saw dramatic spikes over the past three weeks. After peaking at more than 7 million on November 22, the daily number climbed above 5.6 million this weekend.
Trader Joe boosts Avalanche
The increase was mainly fueled by growing interest in some projects in the Avalanche ecosystem. The largest decentralized exchange (DEX) on the network, Trader Joe [JOE]collected $1.23 million in fees on December 11, the second highest of the year.
How much are 1,10,100 AVAXs worth today?
For example, according to DeFiLlama, the DEX recorded transactions worth $1.46 billion over the past seven days, representing a growth of 191%. This exponential rise boosted Avalanche, which moved into the top five chains in terms of DEX volumes.
Source: DeFiLlama
