Connect with us
Active Currencies 14536
Market Cap $2,682,828,745,288.91
Bitcoin Share 49.76%
24h Market Cap Change $-1.06

Avalanche prepares for the next bull run with soaring development activity

2min Read

While other blockchains witnessed a decline in active developers, Avalanche’s development activity remained high in the bear market.

Share this article

  • Avalanche’s network activity declined sharply as well.
  • AVAX was down by over 3% but a few indicators looked bullish.

Bear markets, where volatility remains relatively low, are generally a good opening for blockchains to focus on development activity. High development in bear markets can show its effect during the next bull run. Avalanche [AVAX] has rightly used this opportunity, which was evident from the latest data. However, will development activity alone be enough for AVAX to hold its ground while its price continues to drop? 

Read Avalanche’s [AVAX] Price Prediction 2023-24

Avalanche boasts its development activity

Luigi, head of DeFi at Ava Labs, recently posted a tweet highlighting the number of active developers different blockchains had during the bear market. As per the tweet, Avalanche’s number of developers has remained relatively stable over the last few months.

This was not the case with other prominent blockchains like Polygon [MATIC] and Solana [SOL], as they witnessed a decline in their numbers. Not only did AVAX have more developers, but their efforts were also reflected on the chart as the blockchain’s development activity and development activity contributors count increased substantially over the past three months, which was encouraging to see. 

Source: Santiment

Network activity is dropping

Though the blockchain’s development activity remained high, its network activity dwindled over the bear market. This was evident from a look at Artemis’ data, which pointed out a steep drop in AVAX’s daily active addresses along with daily transactions.

Source: Artemis

A similar declining trend was also noted in terms of AVAX’s captured value. Over the last three months, both AVAX’s fees and revenue dropped. The same remained true for the blockchain’s TVL, as it plummeted sharply during the same period.

Like the blockchain’s network activity, AVAX’s price also dipped, which can be attributed to the current bearish market condition. According to CoinMarketCap, AVAX was down by more than 3.6% in the last 24 hours. At the time of writing, it was trading at $9.52 with a market capitalization of over $3.3 billion, making it the 21st largest crypto.

Going forward

A look at Avalanche’s daily chart revealed quite a few indicators that suggested that the token could soon paint its chart green. For instance, the Relative Strength Index (RSI) was about to enter the oversold zone. This can increase buying pressure and, in turn, lift AVAX’s price. 

How much are 1,10,100 AVAXs worth today  

The Chaikin Money Flow (CMF) also registered an uptick, which looked bullish. In fact, Coinglass’ data pointed out that AVAX’s open interest dropped sharply along with its price, which generally leads to a trend reversal.

Nonetheless, the Money Flow Index (MFI) continued to remain bearish. 

Source: TradingView


Dipayan is a full-time journalist at AMBCrypto. He has 2 years of experience in the content creation industry. A graduate in journalism, Dipayan has a keen interest in keeping himself updated with the latest developments in the crypto-space. He is a singer and a guitarist who also enjoys going on long bike rides.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.