Avalanche’s AVAX Surges 17% and Enters Top Ten Cryptocurrencies as Network Activity Soars

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Avalanche’s native token, AVAX, has shown strong performance, surging by 17% and entering the top ten cryptocurrencies. With a current trading price of $25.74 and a market cap of $9.4 billion, AVAX has the potential to breach the $30 mark if its positive momentum continues. The surge in AVAX’s trading volume, which now stands at $1.1 billion, is attributed to the increased network activity within the Avalanche network.

This surge in network activity is a result of the introduction of Ordinals, which have played a significant role in driving up transaction volumes. Recent data shows that Ordinals minting accounted for 96% of total transactions in the past week, leading to higher network fees and increased demand for AVAX. This highlights the relationship between network utilization and the value of the cryptocurrency.

In November, Avalanche experienced a notable increase in transaction volume, reaching $2.73 billion, the highest recorded since July of the previous year. However, the platform faced a setback in February when Platypus Finance, an Avalanche-based DeFi platform, fell victim to a flash loan attack, resulting in a significant loss. The exploit led to a drop in Platypus’ stablecoin value and subsequent arrests of individuals involved in the attack.

Despite this incident, AVAX’s position within the top ten cryptocurrencies remains strong. However, it faces competition from other challengers like Tron and Chainlink. The future performance of AVAX will be interesting to observe as it continues to navigate the volatile cryptocurrency market.

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