Original | Odaily Planet Daily
Author | Asher
BTC started a correction yesterday, briefly falling below $41,000 USDT, with a low of $40,200 USDT. Other mainstream coins like ETH and SOL also began to decline. However, Avalanche (AVAX) bucked the trend and rose, reaching a high of $43 USDT this morning, with a 24-hour increase of over 15% and a 7-day increase of 82.9%. Its market ranking has also climbed to tenth place.
(
Image source: CoinGecko
)
Although we missed AVAX’s recent surge, through in-depth research into its ecosystem, we still have the opportunity to capture the next potential opportunity. In this volatile cryptocurrency market, a deep understanding of AVAX’s ecological projects may bring us more discoveries and opportunities.
What are the driving factors behind the surge in AVAX price?
Firstly, by observing on-chain data, it is found that Avalanche’s Total Value Locked (TVL) has grown at a similar rate to Solana over the past month, and even shows signs of surpassing it. This indicates that Avalanche’s ecosystem has achieved significant success in attracting funds and users. Compared to other mainstream blockchain projects, Avalanche’s total TVL also shows strong growth.
(
Data source: DeFiLlama
)
Secondly, the daily active addresses in Avalanche’s ecosystem have grown rapidly from 28.27K at the beginning of October to nearly 70K recently, an increase of over 147%. This significant growth not only reflects the rapid expansion of Avalanche’s network user base but also indicates strong investor and user interest in the ecosystem. The growing user activity may be a key factor in Avalanche’s emergence in the market.
(
Image source: Artemis Terminal
)
Lastly, analyzing the daily transaction volume on Avalanche’s ecosystem, it is evident that since October this year, this data has shown an overall upward trend. This indicates that trading activity within Avalanche’s ecosystem is becoming more frequent and user participation on the network is gradually strengthening. This significant growth in transaction volume not only reflects the vitality of Avalanche’s ecosystem but also becomes an important signal of investor attention.
(
Image source: Artemis Terminal
)
AVAX Feast: What are investors chasing?
Looking at the funds flow data, Avalanche’s ecosystem has continuously attracted capital inflows over the past two months. Moreover, over 77% of addresses have remained in an inflow state for the past few days. So, what investment opportunities are these addresses chasing in Avalanche’s ecosystem?
(
Image source: IntoTheBlock)
With the substantial increase in AVAX price, meme, DeFi, and GameFi sectors in Avalanche’s ecosystem have experienced varying degrees of surges. The following image shows the popular projects with impressive token price increases in Avalanche’s ecosystem over the past 30 days, and detailed analysis will be conducted according to each sector.
(
Image source: cryptorank
)
Firstly, the currently hyped sector is the meme sector, and Avalanche’s meme coins are no less popular than those on other public chains. Among them, the first “dog” on Avalanche, HUSKY, has experienced an astonishing increase of over 4200% in the past 30 days, attracting widespread attention. Additionally, COQ, a newly launched MeMe coin last week, has become one of the most anticipated MeMe coins on Avalanche within less than a week. It is even praised by the community as the PEPE of Avalanche’s ecosystem.
Secondly, in the DeFi sector, Trader Joe, the leading DEX, and BENQI, the leading lending platform, are still the core of this round of price increases on the Avalanche network. Trader Joe’s main business is spot trading, and its TVL has increased by over 67% in the past month, reaching $117 million. Its token, JOE, has also increased by over 158% in the past 30 days. BENQI’s performance is also outstanding, with TVL ranking first in Avalanche’s ecosystem, and its token, QI, has increased by up to 344% in the past 30 days.
(
Data source: DeFiLlama
)
Thirdly, in the GameFi sector, notable projects include Shrapnel and HeroesChained. Shrapnel is a first-person shooter (FPS) game with a sci-fi theme. Developed by game development studio Neon Machine, the studio completed a $20 million Series A financing at the end of October, with Polychain Capital leading the investment and participation from Griffin Gaming Partners, Brevan Howard Digital, Franklin Templeton, IOSG Ventures, and Tess Ventures. They will use this round of financing to further develop their shooting game Shrapnel. The game team released an early access version this month, and its token, SHRAP, has increased by over 361% in one month. Another popular game, HeroesChained, is a fantasy action RPG game with the token HEC, which has also seen significant price increases.
Fourthly, in the NFT sector, the main NFTs traded on Avalanche are the JoepegsNFT created by the Trader Joe team, which is the native NFT marketplace on the Avalanche network. According to the ranking of trading volume in the past 7 days, BloodLoop is the top-ranked NFT on JoepegsNFT, with a floor price of 59 AVAX, a 9% increase compared to a week ago. Dokyo World is a highly performing NFT project in terms of floor price in the past week, with a floor price of 51.5 AVAX and a trading volume increase of over 553% in the past 7 days. It is hailed by the community as the Mad lads of Avalanche’s ecosystem.
(
Image source: Joepegs
)
Lastly, besides the commonly mentioned sectors, other sectors have also received attention, especially the Launchpad sector. With the improvement in market conditions and the emergence of new projects, XAVA, the token of the highly anticipated Launchpad project in Avalanche’s ecosystem, has also shown impressive price increases.
Conclusion
Overall, Avalanche’s ecosystem currently shows a continuous upward trend in the popularity of meme, DeFi, GameFi, and NFT sectors. Therefore, the currently popular projects are even more worthy of sustained attention.
At the same time, although discussions about inscriptions on the ecosystem are relatively low, considering the most popular sectors in the current market, they may show remarkable performance in Avalanche’s ecosystem in the future. Therefore, we need to pay more attention and closely monitor the further development of the market.
Why did AVAX surge 15% despite the overall downturn in the market?
Why did AVAX surge 15% despite the overall downturn in the market?
