- Trading volumes for AVAX surged on Mux Protocol
- Overall interest in Avalanche NFTs grew too
After soaring to new heights in March, the price of Avalanche [AVAX] has declined materially over the course of the last few weeks.
Rising volume
However, recent activity on decentralized exchanges (DEXs) like Mux Protocol has inspired optimism among traders. There seems to be renewed trading interest in the altcoin, something that can be seen as a potential sign that the market may be nearing a turnaround. The surging trade volume for tokens like Avalanche’s AVAX has been one of the main reasons behind such optimism. On the back of the same, AVAX even managed to crack the top-10 by volume.
Additionally, declining funding rates for AVAX Futures contracts suggest a shift in sentiment, with investors potentially moving away from short-term bets and towards holding onto altcoins for longer periods.
Source: X
The state of the Avalanche ecosystem will also heavily impact the price of AVAX in the future. AMBCrypto’s analysis of Artemis’ data revealed that the number of daily active addresses on the Avalanche network declined significantly. Moreover, the number of daily transactions occurring on the network also plummeted.
A lack of activity on the network can hinder AVAX’s potential for growth significantly.
Source: Artemis
Even though the DeFi sector of Avalanche has not been performing well, it was seen that interest in Avalanche NFTs grew materially. NFT collections such as Dreamheads and Lofi Leopards garnered significant attention over this period too.
Realistic or not, here’s AVAX market cap in BTC’s terms
This surge in interest in Avalanche NFTs could possibly help the ecosystem attract more users and improve sentiment towards AVAX as well.
Source: Artemis
Looking at the data
At the time of writing, AVAX was trading at $35.52, with its price up by 1.66% in the last 24 hours. Correspondingly, AVAX’s trading volume also hiked by 6.74% during this period.
However, things weren’t as positive on the development activity front. AMBCrypto’s examination of Santiment’s data revealed that the development activity around Avalanche fell significantly. This indicated that the number of code commits being made to Avalanche’s GitHub declined.
A finding like this can have a negative impact on Avalanche’s ecosystem. It can lead to the slowing down of new updates and upgrades on the network as well.
Source: Santiment
