Here’s how AVAX is leading the market’s altcoin charge
- AVAX’s rally comes amidst market wide price correction.
- Whale transactions jumped significantly in the last two weeks.
Defying the sharp pullback in the broader market, Avalanche [AVAX] spiked by nearly 16% in the last 24 hours to enter the top ten list of cryptos by market capitalization. AVAX bounced above the $40-mark for the first time since May 2022, taking the weekly gains to 84% and doubling its value since the start of 2023.
AVAX moves the other way
Here, it is interesting to observe the relationship between AVAX and market barometers like Bitcoin [BTC], with the king coin witnessing price corrections on profit booking. In fact, AMBCrypto examined Hyblock Capital’s data and found that the two assets were negatively correlated, although not very strongly.
To put it simply, AVAX moved in the opposite direction as BTC over the past week.
Signs of upcoming bull run?
The price pump garnered the attention of whale investors. According to IntoTheBlock, transactions worth more than $100,000 hit almost 1000 last week, with significant expansion observed over the last two weeks.
Whales are seen as trendsetters in the market in the sense that when they start buying an asset, it encourages retail investors to follow suit. Therefore, demand for the asset multiplies, creating favorable conditions for a bull run.
Another convincing signal that came to light was the uptick in on-chain traffic. Consider this – AMBCrypto also found that Avalanche’s daily active users soared to an all-time high (ATH) of 152,286 on 11 December.
Finally, on-chain transactions saw dramatic spikes over the last three weeks. After peaking on 22 November to more than 7 million, the daily count climbed over 5.6 million over the weekend.
Trader Joe boosts Avalanche
Notably, the surge was fueled by growing interest in some of the projects on the Avalanche ecosystem. The biggest decentralized exchange (DEX) on the network, Trader Joe [JOE], collected $1.23 million in fees on 11 December, the second-highest over the year.
How much are 1,10,100 AVAXs worth today?
As per DeFiLlama, for instance, the DEX recorded trades worth $1.46 billion over the last seven days, amounting to a growth of 191%. This exponential hike spurred Avalanche, which moved into the top-five chains in terms of DEX volumes.