- The avalanche protocol is reaching an all-time high with active users.
- AVAX price drop contrasts with increased development activity and NFT interest.
Many altcoins took a huge hit in recent weeks as the SEC’s lawsuit against Coinbase and Binance sent the market into a bearish frenzy. AVAX was one of the tokens that was hit hard by the FUD caused by the lawsuit.
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Two different sides
Avalanche, however, had a different story to tell. According to recent data, the protocol has reached its all-time high in terms of active users. Avalanche saw a 382% growth in this metric as the number of active users on the network reached 1 million.
Avalanche is on its ATH with 1 million monthly active users 📈
It is +382% in the number of active addresses in the chain.
Only in the last month.Most people don’t know how lively @avax ecosystem is 🔥
Unveiling: The Avalanche Ecosystem Landscape 🧵👇 pic.twitter.com/s5GWLZghZb
— RedStone Oracles ♦️ (@redstone_defi) June 14, 2023
The increase in activity on the protocol may be largely due to the growing ecosystem. According to data from Dapp Radar, dApps like Stargate, 1inch Finance, and Trader Joe saw a huge spike in terms of unique active addresses on their protocol.
Trader Joe, one of the most popular dApps on the protocol, saw a massive 45.8% spike in terms of trades.
Source: Dapp Radar
NFTs have contributed
Interest in NFTs also played a role in the increase in activity on Avalanche’s protocols. Data from AVAXNFTSTATS showed that the volume of several blue chip NFTS has grown significantly over the past month. Popular collections such as Roostr and Lofi Leopards recorded a volume increase of 260% and 1217% respectively.
Source: Token Terminal
However, the price of AVAX and the protocol activity did not match. This could be due to SEC’s ongoing litigation with Binance and Coinbase.
At the time of writing, AVAX was trading at $11.26. The price has dropped significantly in the past month. Combined with the price, volume for AVAX also decreased significantly during this period.
However, development activity on Avalanche increased, indicating that new updates and upgrades would be deployed to the avalanche protocol. The increase in development activity could attract new users to Avalanche.
Realistic or not, here is AVAX’s market cap in BTC terms
Source: Sentiment
Moreover, Avalanche is recent collaborations with Chainlink, which aims to bridge the gap between Web2 and Web3, could also help attract new users and investors to the protocol.