Journalist
Posted:
- AVAX holders’ gains have matched 2021’s fraction.
- Demand for AVAX-based memes and interest in the ecosystem could trigger another price surge.
Avalanche’s incredible performance [AVAX] has sent 80% of holders into the profit zone in recent months, IntoTheBlock announced.
In the post on X, IntoTheBlock noted that this is no longer the case for AVAX as of May 2021. It is noteworthy to mention that the bull run was in full effect during the said period.
Almost 80% of $AVAX holders are making profits, a figure we haven’t seen since the 2021 bull run
🔗https://t.co/CeW2QFHqvl pic.twitter.com/c3Xcqh50uY— IntoTheBlock (@intotheblock) December 22, 2023
Therefore, this data brings with it the idea that the token could be positioned to outperform the 2021 bull market.
A major reason for this inference is current market conditions. For many, the past few months have been just the beginning of a bear market rebound.
This group of people therefore expects to see much better performance from altcoins, including AVAX, next year.
AMBCrypto then assessed AVAX’s performance. Using CoinMarketCap data, we found that the altcoin price has quadrupled in the last 90 days.
Meme game stimulates demand
Additionally, it wasn’t surprising that some of our reports focused on how the native Avalanche token outperformed Bitcoin [BTC].
However, that’s not the only highlight around the Avalanche ecosystem that caused a surge in demand for AVAX. A notable event at Avalanche was Coq Inus [COQ] appearance.
Coq Inu is a meme developed under the Avalanche blockchain that launched a few weeks ago.
Since launch, the COQ value has increased by 100x. While AVAX fell 5.4% over the past 24 hours, COQ rose 19.10%. As it stands now, there is speculation that COQ will become one of the top memes of the 2024 bull season.
Some of these opinions also suggest that the meme could be one of the driving forces that takes AVAX to new heights. To achieve this, the number of new addresses on the network must also increase.
Interestingly enough, that has been the case for a while, as AMBCrypto reported.
80% may soon be small size
What about Open Interest? Well, an evaluation of Coinglass’s data showed that AVAX’s Open Interest has increased since November.
Source: Coinglass
Open Interest shows the amount of liquidity allocated to contracts tied to a token. The increase indicates that there are more open contracts than closed contracts.
When the Open Interest is placed next to the price action, it implies that AVAX’s decline could be bigger than the decline to $45.46.
However, long-term owners may not need to worry about this as the price could be a good entry point. Given its recent performance, AVAX has the potential to become a triple-digit token by price.
Read Avalanche [AVAX] Price forecast 2023-2024
If this happens, more than 80% of token holders would make a profit. Regardless of the potential, short-term investors should beware of further corrections.
Although AVAX has huge long-term upside potential, opening a long position at the above-mentioned price for quick profits may not be the best option.