AVAX, the native token of the Avalanche ecosystem, has surprised the market with impressive gains while the wider crypto space experiences a drawback. On December 12, the AVAX token broke through the $40 barrier and reached an intra-day high of $43. Currently, the token is trading at $38, showing a 12% increase in the last 24 hours and a 123% increase over the last 30 days.
The market capitalization of AVAX has soared by 341% in just two months, growing from $3.25 billion to the current value of $14.35 billion. This places AVAX ahead of Dogecoin, securing the ninth position on the CoinMarketCap ranking.
In addition to AVAX, other tokens within the Avalanche ecosystem are also experiencing significant gains. JOE, the native token of the decentralized exchange Trader Joe, and QI, the native token of the liquid staking protocol Benqi, have seen gains of 5% and 20% respectively in the last 24 hours. Coq Inu, a memecoin built on Avalanche, has also performed well with a 22% increase in the same period.
While major cryptocurrencies like Bitcoin and Ether have suffered price declines, Solana and Avalanche have seen inflows of $3 million and $2 million respectively, according to a report by CoinShares. This suggests that Solana and Avalanche remain popular choices in the altcoin sector.
Avalanche’s upward trend is supported by strong fundamentals and a surge in user activity. The token is trading above an important demand area and enjoys robust support from major moving averages. If buyer congestion continues to provide support, the bulls may push the token to new yearly highs.
The relative strength index (RSI) indicates that the bulls are in control of the price, and the major moving averages are positioned below the price, further supporting the bullish outlook.
On-chain metrics also support the significance of the support zone between $15 and $20. The global in/out of the money (GIOM) model shows that AVAX has strong support compared to the resistance it faces. This is evidenced by the large number of AVAX previously bought in the $18 to $30 price range.
Total value locked (TVL) data reflects growth within the Avalanche ecosystem and validates the positive outlook for the project. 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 increased significantly, from 44 GitHub commits in mid-October to 284 GitHub commits on December 12. This increase in development activity is seen as bullish, as it signals increased network users and demand for the AVAX token.
The recent developments within the Avalanche ecosystem, such as JP Morgan’s use of an Avalanche subnet in a proof-of-concept trial and Mirai Labs migrating its ecosystem to an Avalanche subnet, have contributed to the increase in development activity.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.