Assessing Avalanche’s state as Trader Joe grabs user interest
- Trader Joe’s rapid growth boosts Avalanche with a surge in active addresses and token trading volume.
- However, Avalanche’s overall growth faces multiple challenges.
Over the past few days, Avalanche [AVAX] experienced a significant surge in activity, and the emergence of Trader Joe has played a crucial role in driving this growth. As dApps on Avalanche protocol gain traction, the platform is poised to compete in the L1 space more effectively.
Trader Joe’s Impact
The latest data reveals that the number of active addresses on the Avalanche network surged by 74% in the last 24 hours. The trading volume of JOE also experienced a significant rise of 23.3% in the same period.
This shows that Trader Joe has the potential to yield long-term positive effects for the Avalanche protocol.
Token terminal’s data showed a 26% rise in the number of Avalanche users over the past week. It was accompanied by a 11.8% surge in revenue in the same period.
These statistics further underline the growing interest and engagement within the Avalanche ecosystem.
While Trader Joe witnessed substantial growth on Avalanche, the same cannot be said for other protocols on the network.
For instance, GMX, a DeFi protocol on Avalanche, experienced a decline in both unique active wallets and volume in the past week.
Consequently, the number of transactions conducted on the network plummeted by an alarming 41% over the last month.
This disparity highlights the need for continuous innovation and diversification within the ecosystem to sustain and enhance its overall growth.
NFT sector challenges
Within the NFT sector on Avalanche, blue-chip collections such as Roostr and Doggerinos observed a significant decline in interest in recent weeks. Furthermore, the number of NFTs minted on the network also experienced a substantial decrease during this period.
Read AVAX’s Price Prediction 2023-2024
Nonetheless, Avalanche’s supportive infrastructure for NFTs and potential partnerships could pave the way for renewed interest and revitalization of the sector.
The rise of Trader Joe and the subsequent increase in network activity have the potential to shape the trajectory of the network.
However, the declining prices of AVAX tokens and the decrease in trading volume raises questions about the correlation between increased activity and market performance.