Avalanche: Even though network effects increase will AVAX be reversed?
Recently due to the effect of listing on FTX, Avalanche showed an increase in TVL, development activity, price. But is there any factor that causes AVAX to reverse, let's analyze it
Listen to this article
Avalanche recently made it to the list of top cryptocurrencies by total value locked (TVL). The network ranks third after BNB and Tron.
Surprisingly, despite being listed, data from DeFiLlama shows that AVAX's TVL has steadily declined over several weeks. In addition, at the time of publication, this figure reached 1.36 billion USD. AVAX Daily, the Twitter controller that posted updates about the Avalanche ecosystem, also reported on the episode in its tweet. The network mentioned that although the drop was less severe, AVAX's TVL still bottomed out.
Additionally, in the latest issue of AVAX Weekly Digest, it was revealed that over 13.91 billion transactions have been performed on the Avalanche blockchain in the past seven days. The tweet also mentions that Avalanche's total stake has exceeded 263.3 million AVAX.
AVAX goes to bull
Like most other cryptocurrencies, AVAX also tries to make its investors happy by posting over 18% weekly gains. However, the scenario seems to have changed slightly as AVAX's 24-hour performance is not up to par.
At press time, AVAX is trading at $18.88 with a market cap of $5.5 B. Interestingly, a look at the AVAX indicators provided some insight into the situation, as they hinted at what was really going on.
Can AVAX Reverse?
AVAX has recently failed to attract interest in the derivatives market as interest rates on funding from Binance and FTX have dropped in recent days.
Not only that, but AVAX's social dominance has also decreased after peaking on October 27, showing the low popularity of the token in the crypto community. Additionally, data from CryptoQuant shows that AVAX's Relative Strength Index (RSI) is in an overbought position. This can further increase the chances of a trend reversal.
However, the only thing that benefits AVAX is its development activity. AVAX development activity has increased in recent days. This is a good sign as it shows that developers are working to improve the network.
Oct 31, 2022