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- The Avalanche ecosystem has seen tremendous growth lately.
- Despite the growth of the ecosystem, AVAX’s price fell, with lower lows and highs.
Avalanche [AVAX] has seen tremendous growth in terms of its ecosystem in recent months.
A sudden spike in activity
In the fourth quarter of 2023, the network experienced notable spikes in on-chain activity, with 6.4 million transactions on November 22 and 6.3 million transactions on December 19.
The first wave was initiated by ASC-20s, while the second was caused by increased activity related to meme coins. These spikes led to continued growth, with new users exceeding active users by 17.7% at the time of writing.
In terms of on-chain activity, total daily transaction volume grew 36.4% in January compared to October (19.2 million transactions vs. 14.1 million).
This growth was increasingly spread across new subnets and projects, with more than 249.4 thousand new contracts deployed between Q4 2023 and February 2, totaling 75.3 million subnet transactions.
Source: Artemis
Take a look at the state of DeFi
Avalanche’s Total Value Locked (TVL) started rising in early Q4 2023, peaking at $1.53 billion on December 21 and remaining consistently above $1 billion since then.
This TVL increase was driven by prominent protocols such as Benqi, Aave, Struct and Delta Prime. Notably, Benqi Finance accounted for more than 40% of the network’s TVL as of December 21.
Trader Joe continued to dominate Avalanche’s DeFi scene, attracting more trading volume than all of his competitors combined.
While overall DeFi activity on Avalanche has gradually declined since late 2023, the network’s daily Real World Asset (RWA) market cap increased by 44.7% between October 2023 and February 2024.
Source: Artemis
How is AVAX doing?
Despite these factors, AVAX’s price has fallen significantly in recent days. During this period, the price showed lower lows and lower highs. However, no significant trend could be identified.
Is your portfolio green? View the AVAX Profit Calculator
At the time of writing, AVAX was trading at $37.98. If the price declines further, the token could soon reach the $27.29 support level.
On the contrary, if the price of AVAX grows, it could weaken the USD 43.52 resistance level and even push past it.
Source: trading view