Avalanche: Can Trader Joe DEX turn things around for AVAX in near-term
- Trader Joe, a DEX on the Avalanche network witnessed a surge in volume.
- The number of active users on the Avalanche network continued to decline.
Avalanche[AVAX] has been struggling to gain users on its protocol over the last few months. However, the dApps on the Avalanche network might be able to help the protocol improve its current situation as they have seen progress.
Collection of top AI tools to use for different tasks.
Read Avalanche’s Price Prediction 2023-2024
Not your average Joe
For instance, Trader Joe, one of the most popular DEXs on the Avalanche network, witnessed a massive spike in volume over the last few weeks, according to data provided by Delphi Digital. The volume generated on the platform reached a high of $100 million during this period.
Along with that, there was a surge of 22.13% in the number of unique wallets on the TraderJoe network over the last week according to Dapp Radar.
Other popular dApps on the Avalanche network such as Benqi and GMX also witnessed a similar spike in activity.
TVL, revenue takes a dip
However, at press time, the popularity of these dApps wasn’t enough to increase the daily active users on the Avalanche network.
According to Dune Analytics’ data, the number of daily active addresses on the network fell from 340,000 to 238,000 in the span of the last three months.
This decline in activity impacted Avalanche’s TVL which ended up falling from $958 million to $827.29 million in the last month.
Well, the revenue generated by the Avalanche was also affected due to the lack of activity on the network.
According to the token terminal’s data, the revenue fell by 16% in the week. Cumulatively, the overall revenue figure collected by the protocol, at the time of writing, stood at $606,600.
How much are 1,10,100 AVAXs worth today?
However, the declining revenue did not stop the progress of developments on the Avalanche protocol. This was showcased by the growing number of active developers on the network which had increased by 10.6% at press time.
It is here to be noted that the rise in developments may help the Avalanche protocol attract more users to the network in the long run.
AVAX manages to stay afloat
Even though the protocol faced its fair share of challenges, the AVAX token managed to do relatively well. The price of AVAX spiked over the last few days, along with its volume.
The volatility of the token also declined within the same time frame. Thus, making the token more attractive to risk-averse investors at press time.