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- The native cryptocurrency of Avalanche, AVAX, has experienced a remarkable 85% surge in the past week, outperforming major players like Dogecoin.
- Recent partnership announcements, increased trading volumes, and a shift in altcoin valuation have contributed to AVAX’s surge.
One altcoin that’s getting massive investors’ attention is no other but Avalanche’s native cryptocurrency AVAX. The Avalanche (AVAX) price has shot up by a significant 85% over the past week, toppling down some top players like Dogecoin (DOGE).
At press time, AVAX is trading 15% up at $41.10 with its market cap above $15 billion. In recent market dynamics, AVAX has experienced a notable surge, outperforming Bitcoin and Ethereum, with a 13.6% gain in the last 24 hours while BTC and ETH saw a 6% decline on December 11. Analysts attribute this surge to various factors, including recent partnership announcements, increased trading volumes, and a shift in the valuation of altcoins.
As Chief Investment Officer at Merkle Tree Capital, Ryan Mcmillin highlighted the excitement around AVAX, possibly fueled by partnerships with major financial players like JPMorgan and Citi for real-world asset tokenization initiatives. Additionally, AVAX’s strength is reflected in a substantial spike in daily transactions, rising from $200,000 to $4.5 million over the last few days, accompanied by a positive trend in daily active addresses.
Over the past three months, the Avalanche network has witnessed an 82% growth in Total Value Locked (TVL), surging from $490 million to $894 million since September 12. During the same period, AVAX token trading volume experienced a remarkable increase of 2,436%, as indicated by DefiLlama data.
Avalanche DEX Trader Activity and Validator Rewards
DeFiLlama data highlights key developments in decentralized finance (DeFi), particularly within Avalanche’s prominent decentralized exchange (DEX), Trader Joe. On December 11, Trader Joe’s fee capture reached $1.23 million, marking its second-highest figure for the year.
The platform’s revenue also achieved a noteworthy milestone, totaling $145,000. Over the past 24 hours, AVAX, Avalanche’s native token, surged by over 20%, surpassing $40 and entering the top ten in market capitalization, reaching its highest point since May 2022. Concurrently, JOE, Trader Joe’s native token, witnessed a gain of over 9%.
Avalanche has garnered significant attention by implementing a strategic initiative to heavily incentivize validators, resulting in a substantial increase in its market value. As of December 7, the proof-of-stake blockchain has allocated over $275 million in AVAX to reward its validators over the past year, a significant contrast to its $11.5 million earnings in user fees. This proactive approach underscores Avalanche’s commitment to ensuring efficient transaction confirmations and maintaining a robust and decentralized network.
Avalanche’s decision to heavily incentivize validators has stirred discussions and excitement within the AVAX community, leading to speculation regarding the potential price trajectory of AVAX as we approach the end of 2023. The next significant price resistance for Avalanche (AVAX) is anticipated at $53, representing another 25% increase from the current levels.
