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Avalanche (AVAX) Network Sees Surge in Stablecoin Activity
The Avalanche (AVAX) network has experienced a significant surge in stablecoin activity, marking the highest level recorded since 2023. This surge indicates a notable increase in activity and liquidity within the network. The rise in stablecoin volume can be attributed to the growing popularity of memecoins on the Avalanche network, which are backed by institutions such as the Avalanche Foundation. The recent memecoin rush program launched by the Avalanche Foundation aims to attract more users to the network and enhance liquidity within its ecosystem. If successful, this initiative could lead to further growth in the network’s ecosystem and price.
Decline in Interest in Avalanche NFTs
Despite the surge in stablecoin activity, interest in Avalanche’s NFT sector has declined. Blue chip Avalanche NFT collections, such as LoFi leopards and Chad Doge, have witnessed a decrease in volume. Additionally, the number of new NFTs being minted on the Avalanche network has also declined, as reported by AVAXNFTStats. However, despite the decline in NFT interest, the price of AVAX has shown resilience, trading at $56.09 with a 1.29% growth in the last 24 hours.
Price Performance and Market Analysis
The price of AVAX has been on an upward trajectory, rallying by 14% since March 12th and establishing a bullish trend with multiple higher highs and higher lows. Although the price retraced to $50.84 after testing the resistance level of $65.39, the decline was not significant enough to indicate a trend reversal. The market cap of AVAX in BTC terms reflects its realistic potential for growth.
Technical Indicators
- The On Balance Volume (OBV) of AVAX has grown in line with the price, indicating increased buying pressure for AVAX.
- However, the Chaikin Money Flow (CMF) of AVAX has fallen, suggesting that the journey to the top may not be entirely smooth for AVAX.
Despite the decline in NFT interest, the overall performance of AVAX in the market suggests potential for further growth, especially if the network continues to attract users through its memecoin initiatives and maintain liquidity within its ecosystem.
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