- Avalanche’s TVL continued to decrease
- The on-chain metrics looked bullish, except for development activity
Avalanche [AVAX] has been witnessing a sharp decline in its Total Value Locked (TVL) over the past few weeks. According to a tweet from AVAX Daily, a popular Twitter handle that posts updates about the Avalanche ecosystem, AVAX registered a 27.53% decline in its TVL during the last week. As per DeFiLlama’s data, at press time, AVAX’s TVL was $916.02 million.
Its weekly performance was also subpar, as its price fell by more than 13%, which could be one of the factors influencing Avalanche’s TVL.
At the time of writing, AVAX was trading at $13.52, with a market capitalization of more than $4 billion. Interestingly, a few developments happened recently that could change AVAX’s fate and initiate its next bull rally.
Not to forget, an increase in AVAX’s price might also have a positive impact on the network’s TVL.
Read Avalanche’s [AVAX] price prediction 2023-24
What’s going on
CryptoQunat’s data revealed that AVAX’s stochastic was in an oversold position, which is a massive bullish signal, suggesting a northbound breakout in the coming days. Moreover, the surge might have already begun as, at the time of writing, AVAX had already registered nearly 3% positive gains over the last 24 hours.
Interestingly, AVAX was also on the list of blockchains in terms of the highest revenue in the last seven days. This update looked promising, as it indicated that we might soon see a surge in AVAX’s price.
Top Blockchains by Revenue 7D$ETH @ethereum $MATIC @0xPolygon $BNB @binance $FIL @Filecoin$AVAX @avalancheavax $OP @optimismFND $SOL @solana $FTM @FantomFDN @arbitrum $NEAR @NEARProtocol #AVAX #Avalanche #DeFi pic.twitter.com/DsByCj3SFU
— AVAX Daily 🔺 (@AVAXDaily) November 15, 2022
Apart from these, several other partnerships and integrations also happened in the Avalanche ecosystem that had the potential to drive the next pump.
For instance, OpenSea can now be used to connect to the multi-chain wallet Coreapp that comes with Avalanche. Not only this, but The Tie also launched NFT and GameFi dashboards that would provide deep visibility into Avalanche.
— Avaxholic 🔺 (@avaxholic) November 15, 2022
More good news
Several on-chain metrics were also supportive of a price surge, which in turn might increase Avalanche’s TVL in the coming month of this year.
Santiment’s charts revealed that Avalanche’s NFT ecosystem witnessed growth during the last week as its total NFT trade volume along with NFT trade volume in USD went up.
According to LunarCrush’s data, AVAX’s volatility also increased slightly in the last few days, which, when coupled with the recent price pump, indicated the possibility of a continued uptrend.
Furthermore, AVAX also remained quite popular in the crypto community, as its social dominance was also relatively high. However, a slight setback for AVAX was the decrease in its development activity, which, by and large, is a negative signal.