Odds of AVAX outpacing its last bull run
- AVAX holders in profit have matched the fraction recorded in 2021.
- Demand for AVAX-based memes and interest in the ecosystem could drive another price increase.
The incredible performance of Avalanche [AVAX] over the last few months has sent 80% of its holders into the profit zone, IntoTheBlock disclosed.
In the post on X, IntoTheBlock noted that this has not been the case for AVAX since May, 2021. It is noteworthy to mention that the bull run was in full force during the said period.
— IntoTheBlock (@intotheblock) December 22, 2023
Therefore, this data brings the notion that the token could be positioned to perform better than the 2021 bull market.
A major reason for this inference is because of the current market condition. For many, the last few months was only the beginning of a bear market revival.
So, these set of people expect next year to bring about much better performances from altcoins including AVAX.
AMBCrypto then assessed AVAX’s performance. Using CoinMarketCap’s data, we discovered that the altcoin price has increased 4x in the last 90 days.
Meme play drives the demand
Furthermore, it was not surprising that some of our reports focused on the way the Avalanche native token outperformed Bitcoin [BTC].
However, that is not the only highlight around the Avalanche ecosystem that triggered a rise in demand for AVAX. One notable occurrence on Avalanche was Coq Inu’s [COQ] emergence.
Coq Inu is a meme developed under the Avalanche blockchain that was launched a few weeks ago.
Since launch, COQ’s value has increased by 100x. While AVAX fell 5.4% in the last 24 hours, COQ increased by 19.10%. As it stands, there are speculations that COQ will become one of the top memes of the 2024 bull season.
Some of these opinions also suggest that the meme would be one of the driving forces that takes AVAX to a new high. For this to happen, the number of new addresses on the network also has to increase.
Interestingly, that has been the case for a while as AMBCrypto reported.
80% may be a small size soon
How about the Open Interest? Well, an evaluation of Coinglass’ data showed that AVAX’s Open Interest has been increasing since November.
Open Interest shows the amount of liquidity allocated to contracts linked to a token. The increase, here, suggests that there are more open contracts than closed ones.
When placed side-by-side with the price action, the Open Interest implies that AVAX’s decline might be more than the fall to $45.46.
However, long-term holders may not need to be worried about this as the price could be a good entry. Considering the recent performance, AVAX has the potential to become a three-digit token per price.
Read Avalanche’s [AVAX] Price Prediction 2023-2024
If this happens, then more than 80% of the token holders would be in gains. Regardless of the potential, short-term holders should watch out for further correction.
While AVAX holds immense upside long-term potential, opening a long position at the aforementioned price for quick profits may not be the best option.