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Here’s how Avalanche’s price reacted to surging network activity

2min Read

Over the past two weeks, Avalanche’s on-chain data saw a surge in network activity. This has been the case since mid-October.

Here's how Avalanche's price reacted to surging network activity

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  • 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.

Is your portfolio green? Check out the AVAX Profit Calculator

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.

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.

Avalanche volume and development activity

Source: Santiment

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.

Avalanche transactions and revenue

Source: DeFiLlama

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.

AVAX price action

Source: TradingView

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.


Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.
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