Yesterday, BTC began to pull back, briefly falling below $41,000 USDT and reaching a low of $40,200 USDT. Other mainstream coins like ETH and SOL also started to decline. However, Avalanche (AVAX) went against the trend and rose. This morning, it reached a high of $43 USDT, with a 24-hour increase of over 15% and a 7-day increase of 82.9%. Its market ranking also climbed to tenth place.
Even though we missed out on AVAX’s recent surge, by thoroughly studying its ecosystem, we still have the chance to capture the next potential opportunity. In this ever-changing cryptocurrency market, gaining a deep understanding of AVAX’s ecosystem could bring us more discoveries and opportunities.
What are the driving factors behind the surge in AVAX price?
Firstly, by observing on-chain data, it can be seen that in the past month, Avalanche’s total value locked (TVL) has grown at a similar rate to Solana, and even shows a trend of surpassing it. This indicates that Avalanche’s ecosystem has achieved significant success in attracting funds and users. Compared to other mainstream blockchain projects, Avalanche’s total TVL also shows strong growth.
Secondly, the daily active addresses in Avalanche’s ecosystem have experienced significant growth. From only 28.27K at the beginning of October, the number of daily active addresses has rapidly increased to nearly 70K, with a growth rate of over 147%. This significant growth not only reflects the rapid expansion of Avalanche’s network user base but also indicates strong investor and user interest in the ecosystem. The continuously growing user activity may be a key factor in Avalanche’s sudden rise in the market.
Lastly, analyzing the daily transaction volume on Avalanche’s ecosystem, it is evident that since October this year, this data has shown an overall upward trend. This indicates that trading activities within Avalanche’s ecosystem are becoming more frequent, and user participation on the network is gradually strengthening. This significant growth in transaction volume not only reflects the vitality of Avalanche’s ecosystem but also becomes an important signal of investor attention.
AVAX Feast: What are investors chasing?
Looking at the flow of funds data, Avalanche’s ecosystem has been continuously attracting capital inflow for the past two months. Moreover, in recent days, over 77% of the addresses have remained in the inflow state. So, what investment opportunities are these addresses chasing in Avalanche’s ecosystem?
With the significant price increase of AVAX, different sectors in Avalanche’s ecosystem, such as memes, DeFi, and GameFi, have experienced varying degrees of skyrocketing. The following image displays the popular projects with impressive token price increases in the Avalanche ecosystem over the past 30 days, and the following sections will provide a detailed analysis based on these sectors.
Firstly, the meme sector is currently receiving a lot of attention, and Avalanche’s meme coins are just as popular as those on other public chains. Among them, the first “dog” on Avalanche, HUSKY, has experienced an astonishing increase of over 4200% in the past 30 days, attracting widespread attention. Additionally, COQ, a newly launched MeMe coin last week, has quickly become one of the most eye-catching MeMe coins on Avalanche, and the community even regards it as the PEPE of the Avalanche ecosystem.
Secondly, in the DeFi sector, Trader Joe, the leading DEX, and BENQI, the leading lending platform on the Avalanche network, are still the core of this round of price increases. Trader Joe’s main business is spot trading, and its TVL has increased by over 67% in the past month, reaching $117 million. Its token, JOE, has also seen an increase of over 158% in the past 30 days. BENQI’s performance is also remarkable, ranking first in TVL within the Avalanche ecosystem, with its token QI seeing a price increase of up to 344% in the past 30 days.
Thirdly, in the GameFi sector, notable projects include Shrapnel and HeroesChained. Shrapnel is a first-person shooter (FPS) game with a sci-fi theme. Developed by the game development studio Neon Machine, the studio completed a Series A funding round of $20 million at the end of October, led by Polychain Capital, with participation from Griffin Gaming Partners, Brevan Howard Digital, Franklin Templeton, IOSG Ventures, and Tess Ventures. They will use the funds from this round of financing to further develop their shooting game Shrapnel. The game team released an early access version this month, and its token SHRAP has seen an increase of over 361% in one month. Another highly popular game, HeroesChained, is a fantasy action RPG game with the token HEC, which has also seen significant price increases.
Fourthly, in the NFT sector, the main NFT traded on Avalanche is JoepegsNFT, created by the Trader Joe team. It serves as the native NFT marketplace on the Avalanche network. According to the ranking of trading volume in the past 7 days, BloodLoop is the number one NFT on JoepegsNFT, with a floor price of 59 AVAX, which has increased by 9% compared to a week ago. Dokyo World is another NFT project that has performed remarkably well in terms of floor price in the past week, with a floor price of 51.5 AVAX and a trading volume increase of over 553% in the past 7 days. It is considered the Mad lads of the Avalanche ecosystem by the community.
Lastly, besides the mentioned sectors, other sectors have also attracted attention, especially the Launchpad sector. With the improvement in the market conditions and the emergence of new projects, XAVA, the token of the highly anticipated Launchpad project in the Avalanche ecosystem, has also shown impressive price increases.
In conclusion, the Avalanche ecosystem is currently witnessing an increasing trend in the popularity of meme, DeFi, GameFi, and NFT sectors. Therefore, the projects currently receiving attention are even more worthy of continuous attention.
At the same time, although the discussion around inscription sectors is relatively low, considering the hottest sectors in the current market, they may show remarkable performance in the Avalanche ecosystem in the future. Therefore, we need to pay more attention and closely monitor further developments in the market.
