As Avalanche observes growth, can it fuel AVAX prices

• Avalanche experienced a significant surge in daily active users.
• Trader Joe and Benqi dApps drove activity on Avalanche, attracting users with DeFi and staking solutions.

Despite the market volatility caused by the recent U.S. regulatory actions, the Avalanche[Avax] network managed to remain unaffected by these fluctuations. Data from Messari revealed a significant surge in Avalanche daily active users, doubling in comparison to the previous year’s average.

Source: Messari

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dApps play a key role

One of the reasons for the growing number of active addresses can be attributed to popular dApps like Trader Joe and Benqi.

Trader Joe, a prominent multi-chain DEX and the creator of Liquidity Book, a capital-efficient AMM in the DeFi sector, played a significant role in driving activity on the network.

Dapp Radar’s data showed a noteworthy 35.51% increase in the number of unique active wallets on the Avalanche protocol in the last 30 days, reaching a total of 399, 72 users. This surge in activity also led to a 20.05% growth in the number of transactions on the network during this period.

Benqi, a liquidity market protocol built on Avalanche, witnessed a 24.1% increase in the number of unique active wallets in the last week. Additionally, the number of transactions on the Benqi network grew by 19.55%.

The BENQI Protocol offers users the ability to lend, borrow, and earn interest with their digital assets. This unique feature attracted users looking for efficient and flexible liquidity solutions, contributing to the growth in activity on the protocol.

Source: Dapp Radar

The activity generated by these dApps on the Avalanche network will likely play a vital role in sustaining long-term growth on the protocol. The increased engagement from users demonstrates the value and utility provided by these applications within the Avalanche ecosystem.

State of NFTs

However, the same positive momentum was not observed in Avalanche’s NFT sector. Data indicated a 12.5% decrease in the number of NFT sales on the network in the past week. This decline could be attributed to market dynamics or specific factors affecting the NFT segment within the ecosystem.

In contrast, stakers on the Avalanche network maintained a positive outlook. According to Staking Rewards’ data, the number of stakers increased by 6.89% over the last month.

Source: Staking Rewards

Realistic or not, here’s AVAX’s market cap in BTC terms

Despite the high activity on the protocol, AVAX’s price experienced a significant decline in recent days, with AVAX trading at $12.35 at press time. However, the trading volume for AVAX remained consistent, reaching 165.7 million at the time of writing.

Source: Santiment