The overall market is down, why did AVAX rise 15% against the trend?

Original | Odaily

Author | Asher

Yesterday, BTC started a pullback, briefly falling below 41,000 USDT, and the lowest touched 40,200 USDT, and other mainstream coins (such as ETH, SOL, etc.) also followed suit and began to decline. However, Avalanche (AVAX) bucked the trend and rose as high as 43 USDT this morning, up more than 15% in 24 H and 82.9% in 7 D, and also climbed to 10th place in terms of market capitalization.

(Source: CoinGecko)

While missing out on AVAX’s recent rally, we still have a chance to capture the next wave of potential opportunities by delving into its ecosystem. In this volatile cryptocurrency market, an in-depth understanding of AVAX’s ecosystem projects may bring us more discoveries and opportunities.

AVAX What is driving the price spike?

First of all, through on-chain data observation, it is found that in the past month, Avalanche’s TVL growth rate is comparable to Solana’s, and even shows a trend of surpassing. This shows that the Avalanche ecosystem has made significant achievements in attracting money and users. Compared to other mainstream blockchain projects, Avalanche’s total TVL is also showing strong growth.

(Source: DeFiLlama)

Secondly, the daily active address data of the Avalanche ecosystem has grown rapidly from only 28.27 K in early October to nearly 70 K in recent days, an increase of more than 147%. This significant growth not only reflects the rapid growth of the Avalanche network’s user base, but also demonstrates the strong interest of investors and users in the ecosystem. Growing user activity may have been a key factor in Avalanche’s rise to prominence in the market.

(Source: Artemis Terminal)

Finally, analyzing the daily transaction volume on the Avalanche ecosystem, it is not difficult to find that since October this year, this data has shown an overall growth trend. This indicates that the transaction activity in the Avalanche ecosystem is becoming more frequent, and the participation of users on the network is increasing. This significant increase in trading volume not only reflects the vitality of the Avalanche ecosystem, but also serves as an important signal for investors.

(Source: Artemis Terminal)

AVAX Feast: What Are Investors Chasing?

Judging from the capital flow data, the Avalanche ecosystem has continued to attract funds in the past two months. Moreover, more than 77% of the addresses are still in the inflow state in recent days. So, what are the hot investment opportunities that these addresses are chasing in the Avalanche ecosystem?

(Source: IntoTheBlock)

With the sharp rise in the price of AVAX, meme, DeFi, GameFi and other sectors in the Avalanche ecosystem have skyrocketed to varying degrees, and the following figure shows the popular projects in the Avalanche ecosystem with outstanding token growth in the past 30 days.

(Source: CryptoRank)

First, the current hype and sought-after sector is the meme sector, and the popularity of meme coins in the Avalanche ecosystem is not inferior to that of other public chains. Among them, the first “dog” on the Avalanche — HUSKY, which has experienced a staggering increase of more than 4200% in the past 30 days, causing widespread concern. In addition, COQ is a new MeMe coin that was launched last week. In less than a week, it has become one of the most talked about MeMe coins on Avalanche, and the community has even hailed it as the PEPE in the Avalanche ecosystem.

Second, in the DeFi sector, the leading DEX on the Avalanche network, Trader Joe, and the lending leader, BENQI, are still at the core of this round of gains. Trader Joe’s current main business is spot trading, and its TVL has risen by more than 67% in the past month, reaching $117 million, and its token JOE has also risen by more than 158% in the past 30 days. The performance of the lending leader BENQI is also very bright, TVL ranks first in the Avalanche ecosystem, and the token QI has risen by as much as 344% in the past 30 days.

(Source: DeFiLlama)

Third, in the GameFi sector, noteworthy projects include Shrapnel, HeroesChained, and others. About Shrapnel, is a first-person shooter (FPS) game with a sci-fi theme. Developed by game development studio Neon Machine, which closed a $20 million Series A funding round at the end of October, led by Polychain Capital with participation from Griffin Gaming Partners, Brevan Howard Digital, Franklin Templeton, IOSG Ventures, and Tess Ventures. They will use the funds from this round of funding to further develop their shooter Shrapnel, whose gaming team released an Early Access version this month, and its token, SHRAP, has risen by more than 361% in a month. Another popular game, HeroesChained, is a fantasy action RPG with a token of HEC, which also has a decent increase.

Fourth, regarding the NFT sector, the main way to trade NFTs is JoepegsNFT created by Trader Joe’s team, which is the native NFT marketplace on the Avalanche network. According to the 7-day trading volume rankings, BloodLoop is the number one NFT on JoepegsNFT, with a floor price of 59 AVAX, up 9% from the floor price a week ago. Dokyo World is an NFT project with a very bright floor price in the past week, with a floor price of 51.5 AVAX, and the trading volume has increased by more than 553% in the past 7 days.

(Source: Joepegs)

Fifth, in addition to the few sectors that are often mentioned, there are other sectors that are in the spotlight, especially the Launchpad sector. As the market situation improves, new projects are emerging, and as a high-profile Launchpad project in the Avalanche ecosystem, its token XAVA has also shown a good increase.

Conclusion

Overall, the Avalanche ecosystem is currently showing a trend of increasing popularity in multiple sectors such as meme, DeFi, GameFi, and NFT. As a result, the current high-profile projects deserve more sustained attention.

At the same time, despite the relatively low level of discussion in the inscription sector, we need to pay more attention and keep an eye on further developments in the market, given that the hottest sectors in the market are currently likely to show impressive performance in the Avalanche ecosystem in the future.