- AVAX’s price increase was accompanied by a 20% increase in Open Interest.
- The pump could be tied to an increase in activity on an Avalanche-based decentralized social app.
Avalanche [AVAX] rose 13.29% in the last 24 trading hours, becoming the most prolific gainer among the top 10 cryptocurrencies by market capitalization.
According to CoinMarketCapthe ninth-largest crypto shot to a 10-day high of $36, seeing a 34% spike in daily trading volumes.
The recovery raised expectations for a more sustained rise in the price of an asset that has been under constant selling pressure since the start of the year.
At the time of writing, AVAX was down 14% year-to-date (YTD).
Is this the catalyst?
The pump can be tied to an increase in activity on Avalanche-based decentralized social app The Arena.
The project’s total value locked (TVL) increased 27% in the last 24 hours, AMBCrypto found using DeFiLlama data.
At the time of writing, The Arena was the fourth largest SocialFi dApp, with deposits of over $798,000.
Source: DeFiLlama
The Arena sought to capitalize on the growing popularity of SocialFi apps, which have seen a surge in interest following the launch of the more popular and evolved Friend.tech project.
The Arena rose to prominence last October, attracting $2.78 million in TVL just 10 days after its launch. However, the project was exploited shortly afterwards, leading to a dramatic decline in interest.
The app’s proponents hoped the latest uptick could be the start of good things to come. Furthermore, since AVAX was the utility symbol of the project, it would derive significant value from the emergence of the latter.
AVAX sees demand in the Futures market
By shifting the focus back to AVAX, the price increase also excited the derivatives market.
Read Avalanche [AVAX] Price forecast 2024-25
According to AMBCrypto’s analysis of Coinglass data, the Open Interest (OI) in AVAX futures has risen by a whopping 20% to $239 million over the past 24 hours.
Source: Coinglass
Furthermore, the number of bullish bets on AVAX has overtaken bearish bets over the past 24 hours. This implied that more traders were optimistic about AVAX’s short-term prospects.
Source: Coinglass