Here’s how Avalanche’s price reacted to surging network activity
- Thanks to ongoing developments, Avalanche’s network activity rose.
- AVAX could be headed for another pullback.
On 27 October, Avalanche [AVAX] revealed that it had experienced a surge in network activity. However, there is more to Avalanche’s latest rise than what meets the eye.
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One reason for the surge in Avalanche’s network activity could be the rollout of a new subnet. This meant that the network’s operations were expanding. But that’s not all. The Avalanche network also revealed that it was expanding into asset tokenization.
Activity on Avalanche is heating up🔥
This week featured the launch of a new Subnet, new integrations for developer tooling, updates on the infrastructure of tokenization, and more!
Here's the top stories you might have missed in this week's Icebreaker 👇 pic.twitter.com/KDVDjIppWc
— Avalanche 🔺 (@avax) October 27, 2023
Speaking of networks, Avalanche revealed that it was also open to collaborations or integrations with other networks. In Avalanche’s case, it will be supporting the Chainlink suit of services.
Assessing Avalanche’s on-chain performance
As for Avalanche’s on-chain data, the surge in network activity was observed in the form of a volume surge. This was particularly the case in the last two weeks since mid-October.
Most of the aforementioned developments have contributed to the surge in development activity during the same 2-week period.
While these findings may point toward more network activity, the Avalanche network experienced an overall decline in transactions and revenue in the last five months.
These observations are contrary to the expectations of robust network activity. Although, it could be argued that the same metrics indicate growing stimulation, which could suggest that revenue and transactions are recovering.
If the same metrics pivot in favor of more upside, then that will be a healthy indicator of positive long term growth for Avalanche. Such an outcome could also translate to more demand for the network’s native cryptocurrency, AVAX.
How much are 1,10,100 AVAXs worth today?
AVAX price action recap
AVAX benefited from the crypto market’s latest bullish attempt. It pulled off a 33% price spike from its lowest price point in October, to its weekly high of $11.56. It exchanged hands at $10.97 at the time of writing, indicating that it experienced a substantial surge in demand.
The fact that AVAX did not push beyond the short-term support suggested that demand was not yet strong enough. Meanwhile, it was oversold at press time, and demand had already slowed down. This indicated a high probability of a reversal.