Avalanche users flock in despite low prices because…
- Avalanche protocol reaches an all-time high in active users.
- AVAX price decline contrasts with increased development activity and NFT interest.
Many altcoins took a massive hit over the last few weeks as the SEC’s lawsuit against Coinbase and Binance sent the market into a bearish frenzy. AVAX was one of the tokens that was impacted severely by the FUD caused by the litigation.
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Two different sides
However, Avalanche had a different story to tell. According to recent data, the protocol has reached its all-time high in terms of active users. Avalanche managed to see a growth of 382% in this metric, as the number of active users on the network reached 1 million.
Avalanche is on its ATH with 1M monthly active users ?
It's +382% in the number of active addresses on-chain.
Only in the last month.
Most people don't know how vibrant @avax ecosystem is ?
Unveiling: The Avalanche Ecosystem Landscape ?? pic.twitter.com/s5GWLZghZb
— RedStone Oracles ♦️ (@redstone_defi) June 14, 2023
The surge in activity on the protocol could be largely due to its growing ecosystem. According to Dapp Radar’s data, dApps such as Stargate, 1inch Finance and Trader Joe observed a massive spike in terms of unique active addresses on their protocol.
Trader Joe, one of the most popular dApps on the protocol, saw a massive spike of 45.8% in terms of transactions.
NFTs made a contribution
Interest in NFTs also played a role in the surge in activity on Avalanche’s protocols. AVAXNFTSTATS’ data indicated that the volume of various blue chip NFTS grew significantly over the last month. Popular collections such as Roostr and Lofi Leopards registered an uptick of 260% and 1217% respectively, in terms of volume.
However, the price of AVAX and the protocol activity were not in congruence. This could be due to the ongoing lawsuit of SEC with Binance and Coinbase.
At press time, AVAX was trading at $11.26. The price has declined significantly over the past month. Coupled with the price, the volume for AVAX also fell materially during this period.
However, the development activity on Avalanche surged, indicating that new updates and upgrades were to be deployed on the avalanche protocol. The surge in development activity could attract new users to Avalanche.
Realistic or not, here’s AVAX’s market cap in BTC terms
Additionally, Avalanche’s recent collaborations with Chainlink, which aim to bridge the gap between Web2 and Web3 could also help attract new users and investors to the protocol.