Journalist
Posted:
- Avalanche’s network activity also fell sharply.
- AVAX fell more than 3%, but a number of indicators looked bullish.
Bear markets, where volatility remains relatively low, are generally a good opening for blockchains to focus on development activities. High developments in bear markets can show their effect during the next bull run. Avalanche [AVAX] rightly made use of this opportunity, as shown by the latest data. But will development activity alone be enough to keep AVAX afloat as the price continues to fall?
Read Avalanche of [AVAX] Price prediction 2023-24
Avalanche has its development activities
Luigi, head of DeFi at Ava Labs, recently posted a tweet highlighting the number of active developers that various blockchains had during the bear market. According to the tweet, Avalanche’s developer count has remained relatively stable in recent months.
Interesting to see @avax as one of the most resilient ecosystems for active developers during the bear market.
While most ecosystems were in decline, Avalanche has seen a slight increase in recent months.
Source: @TheTieIO pic.twitter.com/SfAlpY7lLD
— Luigi D’Onorio DeMeo🔺 (@luigidemeo) September 9, 2023
This was not the case with other prominent blockchains such as Polygon [MATIC] And Solana [SOL], as they witnessed a decrease in their numbers. Not only AVAX have more developers, but their efforts were also reflected in the graph as the blockchain development activity and the number of contributors to the development activities have increased significantly over the past three months, which was encouraging to see.
Source: Santiment
Network activity decreases
While blockchain development activity remained high, network activity declined relative to the bear market. This was evident from a look at Artemis’ facts, which showed that AVAX’s daily active addresses, along with daily transactions, fell sharply.
Source: Artemis
A similar downward trend was also noted in terms of AVAX’s captured value. Over the past three months, both AVAX’s fees and revenues have fallen. The same continued to be true for the blockchain’s TVL, as it plummeted sharply over the same period.
Like the blockchain network activity, AVAX’s price also fell, which can be attributed to the current bearish market conditions. According to CoinMarketCapAVAX fell by more than 3.6% in the past 24 hours. At the time of writing, it was trading at $9.52 with a market cap of over $3.3 billion, making it the 21st largest crypto.
Moving forward
A look at Avalanche’s daily chart revealed quite a few indicators that suggested the token could soon turn its chart green. For example, the Relative Strength Index (RSI) was about to enter the oversold zone. This can increase purchasing pressure and therefore increase AVAX‘s price.
How many Worth 1,10,100 AVAXs today
The Chaikin Money Flow (CMF) also registered an upswing, looking bullish. Actually Coinglass’ facts pointed out that AVAX’s open interest fell sharply along with the price, which generally leads to a trend reversal.
Nevertheless, the Money Flow Index (MFI) remained bearish.
Source: TradingView