Why AVAX’s Prospects Look Gloomy Despite the Address Surge
Avalanche (AVAX) recently passed an important milestone, demonstrating the increasing growth and usage of cryptocurrency among the public. Token Terminal reports that AVAX’s monthly active user base has reached an all-time high, indicating the platform’s growing popularity. In addition, Artemis recorded an increase in daily active addresses, confirming the growth of AVAX’s user base.
Despite this encouraging progress, AVAX’s C-chain saw a nearly 30% drop in weekly transactions, which directly affected overall grid gas usage, resulting in a modest decline in the previous week.
Surprisingly, AVAX’s NFT ecosystem expanded significantly in the same period. According to Santiment data, AVAX’s overall NFT deal number and USD-denominated trading volume have increased significantly, a positive indicator for fans of the NFT platform.
The top earner in Total Value Locked (TVL) over the past week was recognized by AVAX Daily, a popular information resource for AVAX fans. According to the tweet, the top three apps are Kalmy App, SushiSwap and WOOFi Swap. Furthermore, Trader Joe Lend and Kyber Swap landed in the top five. However, Artemis data showed AVAX’s TVL had declined over the previous 30 days.
Unfortunately, Avalanche investors ran into a predicament on May 31, 2023, when the price of the token plummeted. The price of AVAX fell more than 3% in the previous 24 hours, according to CoinMarketCap statistics. AVAX is trading at $14.11 as of writing, with a market cap of over $4.8 billion.
Furthermore, AVAX’s one-week price volatility increased, indicating the possibility of a significant price decline in the near future. Additionally, AVAX’s social dominance took a hit, despite the token’s continued strong demand in the derivatives market, demonstrating its strength in the area.
Avalanche’s market indications are mostly pessimistic. For example, the 20 day EMA held below the 55 day EMA, indicating a classic bearish indicator. The Relative Strength Index (RSI) is also well below neutral, indicating a lack of bullish momentum. Moreover, the AVAX Money Flow Index (MFI) followed a similar downward pattern, raising prospects for further price declines in the coming days.
Despite the hurdles, Avalanche’s growing popularity and usage among crypto enthusiasts is pushing its ecosystem even further. Avalanche intends to secure its place in the ever-changing world of blockchain by focusing on solving market dynamics and nurturing its growing user base.
