Avalanche’s latest surge could have a BTC connection. Here’s how…
- Avalanche registers increased activity due to rising interest in Bitcoin and the use of BTC.b.
- AVAX price witnesses growth alongside a BTC rally, but sustainability and ecosystem development remain crucial factors.
Bitcoin [BTC] has seen a massive surge in interest over the last few days. This surge in interest has allowed Bitcoin to reach the $30,000 price mark. However, it was observed that the Avalanche[AVAX] protocol also witnessed a spike in activity due to interest in BTC.
Read Avalanche’s [AVAX] Price Prediction 2023-2024
Its a Wrap
According to recent data, it was observed that Avalanche observed the largest inflow on its protocol over the last 24 hours. This occurred due to Avalanche’s BTC.b.
$AVAX had the largest net inflow over the last 24 hours.
— Emperor Osmo? (@Flowslikeosmo) June 21, 2023
BTC.b on Avalanche refers to a wrapped version of Bitcoin on the Avalanche blockchain. Wrapped tokens represent other assets, in this case, Bitcoin, on a different blockchain.
An increase in demand for BTC directly drives up the demand for BTC.b (wrapped Bitcoin) on Avalanche. This occurs because BTC.b provides users with easy accessibility to Bitcoin within the Avalanche blockchain, allowing them to transfer their assets and participate in the Avalanche ecosystem.
The condition of AVAX also improved amidst the surge in demand for BTC and BTC.b.
In the latter half of May, AVAX traded sideways between $14.92 and $13.69 price levels before plummeting to $11.025 and declining by 24.22% on 5 June. However, the resurgence of BTC inspired interest from traders in altcoins, such as AVAX as well, made evident by the growth in the price of AVAX observed over the last few days.
Since 20 June, AVAX’s price increased by 17.74%. At press time, AVAX was trading at $13.04. The Relative Strength Index (RSI) and Chiakin Money Flow (CMF) stood in high positions.
This suggested that money flow and momentum were on the buyers’ side at press time. However, the larger trend of AVAX’s price continued to be bearish. However, if AVAX manages to test and surpass the 13.69 level in the coming days, it might give some legitimacy to AVAX’s current bullish momentum.
Where do traders stand?
Furthermore, traders were skeptical about AVAX’s surge in price as indicated by the dominance of short positions taken by traders against the token. Only time will tell whether AVAX will continue to sustain the bullish momentum surrounding its price.
Realistic or not, here’s AVAX’s market cap in BTC’s terms
Additionally, the development of its ecosystem will play a huge role in attracting buyers to AVAX. Not only has Avalanche shown dominance in the DeFi sector through BTC.b, but there was also the interest shown in its blue-chip NFTS according to AVAXNFTSTATS.