Journalist
Posted:
- Avalanche ensured that money flowed into the network.
- The price of AVAX has risen by more than 4%.
Avalanche [AVAX] recently reached a major milestone in its stablecoin market capitalization. How have other critical metrics responded in light of this recent performance?
Avalanche stablecoin reaches months-high levels
An analysis of stablecoin market capitalization on DefiLlama for Avalanche, it appeared that the network recently reached levels not seen in months.
According to the data, the market cap of stablecoins at the time of this writing was approximately $1.15 billion.
This increase is significant, as the market capitalization of stablecoins was previously around $1 billion, after a notable drop around November 2023.
However, there has been a sharp increase in the past 48 hours, bringing the number of messages to press time levels.
Source: DefiLlama
The increase in the market capitalization of stablecoins suggested a notable influx of cash into the ecosystem.
Other Avalanche stats have struggled to rise
The recent increase in Avalanche’s stablecoin market cap has not had a significant impact on the Total Value Locked (TVL) in the ecosystem. Despite an increase in the TVL, it was not as pronounced as with the stablecoins.
TVL stood at around $888 million at the time of writing, showing a more moderate increase. Furthermore, Avalanche’s trading volume analysis showed no significant recent movements.
While there are some signs of increase, the overall trend is down, with 24-hour volume at around $150 million at the time of writing.
Additionally, network inflow analysis showed a recent low, with press time inflows exceeding $3.8 million.
AVAX on roll
AMBCrypto found that Avalanche’s daily timeframe chart showed a consistent uptrend in price over the past eight days, with only two exceptions.
On February 9, AVAX successfully surpassed its resistance, shown by the short-term moving average (yellow line). It has maintained its position ever since.
At the time of writing, AVAX was trading around $41.3, up over 4%.
Source: trading view
Realistic or not, here is AVAX’s market cap in BTC terms
Furthermore, recent upward momentum has taken the fund above the neutral line, pushing it close to the overbought zone on the Relative Strength Index (RSI).
The prevailing sentiment around the network could further contribute to the price trend if it continues.