Altcoin
Why AVAX could dampen investor hopes despite Avalanche’s endeavors
- Avalanche is winning in enterprise adoption courtesy of its latest partnership in South Korea.
- AVAX delivers average rise indicating a lack of excitement around the news.
The future just got a lot more promising for the Avalanche [AVAX] blockchain network. This is because the network just jumped to the forefront of South Korea’s WEB developments revealed in a recent announcement.
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According to the official announcement, Avalanche entered into a partnership with SK Planet, one of South Korea’s leading tech and data company. The latter will reportedly build a subnet on Avalanche as part of the company’s plan to have a WEB3 presence. South Korea is currently one of the countries where WEB3 development is booming.
SK Planet, a leading data and technology company in South Korea, is building an Avalanche Subnet for their tens of millions of users.
Their subnet, UPTN, will be integrated with SK Planet’s portfolio of consumer applications, including OK CashBag. pic.twitter.com/hnbwapQBgM
— Avalanche ? (@avalancheavax) April 5, 2023
Avalanche’s partnership with SK Planet is among the first examples of enterprise blockahin taking shape. The collaboration will reportedly onboard tens of millions of the South Korean company’s customers onto Avalanche. Such a major shift may trigger a robust flow of liquidity into the blockchain. It may also encourage more businesses to embrace the Avalanche network.
The announcement marks an important step for Avalanche towards mass adoption. But how will it impact the network? We might witness a massive surge in daily active users, as well as trading volumes.
A quick look at Avalanche’s volume revealed that the volume was at its highest level since 24 March on the day of the announcement. However, failing to last, the volume tanked in the last 24 hours.
Source: Santiment
Strong development underpinned the announcement
On a positive note, Avalanche’s weighted sentiment experienced a surge in weighted sentiment on 5 April. This was after the news of Avalanche’s partnership with SK Planet, indicating that investors welcomed the announcement with open arms.
Source: Santiment
Avalanche’s new partnership may also pave the way for more development activity in the next few months. Investors should note that the network’s development activity pivoted this week. However, it is not clear whether the increased development is related to the SK Planet’s subnet’s development.
Realistic or not, here’s Avalanche market cap in BTC’s terms
The overall outcome as observed with the metrics highlight a lack of excitement in the market. Nevertheless, Avalanche’s native cryptocurrency AVAX maintained a bullish trajectory so far this week. It stood at $18.18 after an 8.86% upside since 3 April.
Source: TradingView
Furthermore, AVAX’s Relative Strength Index (RSI) was firmly above its mid-range while the Money Flow Index (MFI) confirmed that it garnered some liquidity inflows so far this month. However, the price volatility was still low and the subnet launch might be weeks away if not months.
