Can AVAX price follow the surge in Avalanche active addresses?
- Avalanche active addresses have increased 2x compared to the yearly average.
- Data shows that monthly active addresses recently reached 1.21 million.
- However, the price of AVAX has traded lower this week as Bitcoin struggles to stay above $30k.
Avalanche, a layer 1 blockchain developed by Ava Labs, has experienced a consistent increase in active addresses over the past month.
On-chain data shows that daily active users on the blockchain network doubled in June, surpassing the average recorded over the past year.
According to crypto market intelligence provider Messari, most of the engagement during this period has been focused on decentralized exchanges, including retail-focused DEX Trader Joe and Web3 protocol Galxe.
@avax witnessed a surge in daily active users, doubling compared to the average over the past year.
- Bitcoin falls below $30K, altcoins drop, BTC dominance at 26-month high.
- ARK has updated its Bitcoin ETF filing to include a surveillance sharing agreement.
- Binance’s market share declined in June.
Engagement revolves around DEXs like @traderjoe_xyz and applications like @Galxe.
Avalanche aims to revitalize its network and foster a stronger #DeFi ecosystem. pic.twitter.com/Q3yLcZV2D1
— Messari (@MessariCrypto) June 29, 2023
Data from Avalanche explorer Avascan shows that the network recently reached 1.21 million monthly active addresses.
But can AVAX price benefit from the network activity as the platform seeks to regain its market share through a boost in its DeFi ecosystem?
AVAX price outlook
Avalanche’s Total Value Locked (TVL) has decreased from $13.93 billion in December 2021 to approximately $1.4 billion currently.
Meanwhile, AVAX has seen a decline in price over the past week since bulls encountered resistance near the $13.70 level on Sunday. The cryptocurrency token has dropped 3% in the past 24 hours and 5% in the last seven days as buyers attempt to defend the $12.50 area against bearish pressure.
As shown in the price chart below, AVAX is contending for upward momentum while Bitcoin (BTC) bulls aim to halt bearish advances near the critical $30k level. A new surge in BTC could provide support to altcoins and potentially allow AVAX/USD to reclaim the $14 region.
This could propel Avalanche prices to the peak observed in April when bulls surpassed $20, representing a 100% increase from the June lows of $10.
The MACD also indicates weakness on the side of buyers. A reversal to the upside in the indicators will highlight potential gains, while a downturn will threaten a return to the key support range around $11.20 – $9.50.
