Avalanche’s NFT boom: Can AVAX ride the green wave to success? – Business News – Business News
- Avalanche is seeing impressive growth in its irreplaceable sector.
- There are plenty of headwinds ahead for AVAX, but bulls see the year ahead as promising.
Avalanche (AVX), a decentralized platform, has recently seen a surge in non-fungible token (NFT) activity with a significant increase in active addresses. This surge has forced investors to question whether AVAX can ride the green wave to continued success.
NFTs surge on Avalanche
Crypto researcher, Emperor Osmo mentioned in a Post The increase in active addresses on Avalanche’s NFT network has indicated an increase in engagement with the platform. In particular, there are blue-chip collections like Dreamheadz and Docuworld. played A major role in attracting interest in NFT activity and increasing this boom.
The platform’s compatibility with the Ethereum Virtual Machine (EVM) has also facilitated seamless migration of existing projects, further fueling the NFT boom. What is encouraging is that the positive momentum in the NFT sector is likely to have a positive impact on the overall health of the Avalanche network, creating a dynamic and thriving ecosystem.
However, amid this NFT boom, some challenges have emerged in the decentralized finance (DeFi) sector on the Avalanche network. In particular, total value locked (TVL) and decentralized exchange (DEX) volumes on the network have experienced declines in recent weeks, raising concerns about the protocol’s resilience amid potential negative impacts.
Despite these challenges, Trader Joe’s, the leading DEX operating on the Avalanche Network, has shown significant growth. With a 13.7% increase in activity over the past month and a staggering 134.6% increase in revenue, Trader Joe’s performance stands out as a positive indicator for Avalanche.
It remains to be seen whether Trader Joe’s can maintain and increase DEX volume on the network going forward.
Advancement and Implications of AVAX Token
In terms of AVAX tokens, a notable development is the burning of 2 million AVAX in 2023, which represents a doubling of the previous total within a year. This burning mechanism has an impact on the scarcity of the token and may impact its value over time.
In particular, the native token of AVAX has seen significant growth. Currently trading at $35.98, the token shows an increase of 4.49% in the last 24 hours. Additionally, AVAX’s market cap has climbed to $13.1 billion, with trading volume up 13% to $978.7 million.
AVAX bulls are expressing bullish confidence in the year ahead, fueled by network growth and the broader positive trend set by Bitcoin, as well as anticipation of potential Bitcoin exchange-traded fund (ETF) approval.
On-chain data shows that 96,140 addresses have received 10.53 million AVAX at an average price of $39.61. Investors are optimistic about the rebound, but breaking the $40 resistance level could prove challenging as some investors look to take profits on further gains.
On the other hand, 515,630 holders bought 10.53 million AVAX at the maximum price of $34.43, potentially facing downside pressure. The long-term target for AVAX is now $50, with targets set at $40 and $45. The path forward for AVAX depends on its ability to withstand challenges in the DeFi sector while leveraging the momentum in the NFT sector to achieve these bullish price targets.
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Source: biz.crast.net
Source: biz.crast.net