- AVAX experienced a massive price surge, riding the excitement of the Spot BTC ETF approval.
- Concerns grew about the sustainability of AVAX’s rally amid a mixed market response.
Amid the collective celebration of the Spot BTC ETF approval, the cryptocurrency market experienced varied reactions, with certain altcoins, including Avalanche [AVAX], witnessing massive surges.
While AVAX’s recent price boost garnered attention, concerns grew about the sustainability of this rally.
Will the bulls win this time?
At the time of reporting, AVAX stands at $38.53 reflecting an impressive 12.9% surge in the last 24 hours.
Despite this surge, a closer look at AVAX’s price movement over the past month revealed a somewhat bearish trend, marked by lower lows and lower highs. The Relative Strength Index (RSI) for AVAX also declined during this period signaling a waning bullish momentum.
Although social volume around AVAX has increased, indicating heightened discussions and interactions, the sentiment declined.
This meant that a lot of negativity around AVAX was still omnipresent on social networks and platforms. The negative sentiment could impede the chances of growth for AVAX in the future.
Source: Santiment
NFTs make some noise
Amidst the price action, the Avalanche network experienced a surge in NFT activity. A mint by the SteadyNFT collection managed to generate $430,000 in terms of revenue in only 6 minutes.
New NFT mints contribute substantial volume and activity to the ecosystem. This influx of activity around NFTs can positively impact the Avalanche network and attract more creators to the platform in the future.
It’s been only 10 days since the year started, and @avax had its first hyped mint. @SteadyNFT_ minted in only 6 minutes, generating $430k worth of revenue! https://t.co/QYEOAzlI5o pic.twitter.com/PiOEmIHcLa
— Ali Taslimi (@AliTslm) January 10, 2024
Beyond NFTs, the overall activity and transactional volume on the Avalanche network also witnessed growth in recent months. This surge in network activity bodes well for AVAX, strengthening its position within the broader crypto landscape.
However, not all aspects of Avalanche’s performance aligned positively.
How much are 1,10,100 AVAXs worth today?
While the network’s DeFi sector, measured by Total Value Locked (TVL) and Decentralized Exchange (DEX) volumes, showed upward momentum, development activity experienced a decline.
Source: Artemis
The decline in development activity suggests that new updates and upgrades on the network may be delayed. This could make it difficult for Avalanche to attract more new users in the future.
Source: Santiment