AVAX, the native token of the Avalanche ecosystem, has surprised the market with impressive gains despite a downturn in the wider crypto space. On December 12, the AVAX token broke through the $40 barrier and reached a high of $43. As of now, the token is trading at $38, a 12% increase in the last 24 hours and a 123% increase in the last 30 days.
This rally has caused Avalanche’s total market value to soar from $3.25 billion in mid-October to its current value of $14.35 billion, representing a staggering increase of over 341% in just two months. With this surge, AVAX has surpassed Dogecoin to secure the ninth position on the CoinMarketCap ranking.
Furthermore, AVAX’s market capitalization has also experienced a 200% increase over the past year, rising from $4.04 billion in December 2022.
Not only AVAX, but other tokens within the Avalanche ecosystem have also been performing well. JOE, the native token of decentralized exchange Trader Joe, and QI, the native token of liquid staking protocol Benqi, have seen gains of 5% and 20% respectively in the last 24 hours. Additionally, memecoin Coq Inu, built on Avalanche, has climbed 22% during the same period.
In a recent crypto fund flows report, CoinShares head of research James Butterfill noted that while major cryptocurrencies like Bitcoin and Ether have experienced price declines, Solana and Avalanche have seen inflows of $3 million and $2 million respectively, making them popular choices in the altcoin sector.
The fundamentals and increased user activity in the Avalanche ecosystem support the upward trend. Avalanche is currently trading above a significant demand area, indicating strong support. If buyer congestion continues at this level, it may drive the token to new yearly highs as more buyers enter the market.
Technical indicators also suggest a bullish outlook. The relative strength index (RSI) shows that the bulls are in control, and the major moving averages are positioned below the price and facing upward.
On-chain metrics from IntoTheBlock’s global in/out of the money (GIOM) model further confirm the importance of the support zone between $15 and $20. This model shows that AVAX has strong support compared to the resistance it faces upward.
Total value locked (TVL) data also reflects the growth within the Avalanche ecosystem. The TVL on the Avalanche blockchain has increased by 90% since the rise in AVAX price, indicating increasing demand among large on-chain users.
Development activity on Avalanche has also surged, signaling increased network users and demand for the AVAX token. The number of GitHub commits has risen from 44 in mid-October to 284 in December.
These positive developments within the ecosystem, including partnerships with JP Morgan’s Onyx and Mirai Labs, contribute to the bullish sentiment surrounding Avalanche.
It’s important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any investment decisions.