Avalanche’s growth in the GameFi space has this to say about AVAX’s future
- Avalanche gameFi projects are still growing at a fast pace despite market disruptions
- AVAX sees a return of bullish momentum albeit in low volumes
Avalanche has managed to keep itself in the news ever since it came into the blockchain fold. We have seen it evolve to support tokens and NFTs but it has not stopped there. The GameFi segment is one of the fastest growing segments in the blockchain space and Avalanche is among the networks looking to capitalize on that growth.
Read Avalanche’s [AVAX] price prediction 2023-2024
A recent update by Avalanche Talk highlighted some of the top gameFi projects on Avalanche by volume. The highlight also consisted of a ranking that showcased the level of growth that those projects have achieved during the aforementioned period.
TOP AVALANCHE GAMEFI WITH HIGHEST GROWING VOLUME 7D#GrowingVolume7D is an indicator of how well a project is performing across an ecosystem. Right now, let's take a look at the #Avalanche gamefi projects with the highest growing volume in the last 7 days ?#Avax $Avax pic.twitter.com/yfFJDG70JN
— Avalanche Talk (@Avalanche_Talk) November 14, 2022
The gameFi project with the highest seven-day volume was up by as much as 1481.7%. The least in the ranking was up by 7.77%. Despite the difference, the key takeaway was that the segment was enjoying growth despite the recent market headwinds. This was a good sign that confirmed that the gameFi segment was rapidly growing.
Assessing the next move for AVAX
Despite this growth, the segment might still be too young to have a sizable impact on AVAX demand. That may not always be the case especially in the long-term. AVAX’s price action continued to take a hit in the short-term, reflecting the rest of the crypto market.
AVAX dropped to a new 2022 low last week before attempting a recovery. However, those recovery gains were wiped out courtesy of the bearish performance during the weekend. This meant that it was still within its lower range at its $12.90 price action.
The bearish performance this week saw AVAX drop almost to last week’s lows. The interesting thing to note was that the Relative Strength Index (RSI) remained above the oversold zone despite the price retracing back to the lower range.
In addition, investor sentiment kicked off the week with a slight improvement in favor the bulls. AVAX demand in the derivatives market also saw a sharp recovery in the last four days.
The recovery indicated that the investor confidence was gradually recovering. This can be seen in Avalanche’s market cap which grew by over $300 million as of 14 November. This was an indicator that there was substantial accumulation when the price retested the lower range.
The above changes so far indicated that investors were slowly buying back in as the market cooled down from the bearish assault. However, AVAX demand wasn’t back in full swing because investors were still concerned about the chances of another crash.