- AVAX’s price action showed signs of a possible reversal to a bullish phase after months of decline
- Healthy address growth and expanding the DeFi ecosystem could boost Avalanche’s potential
AVAX is one of the top altcoins that benefited this week as altcoins received more attention. As a result, the bullish performance fueled hopes for further recovery from the bearish trend that has prevailed since March.
AVAX was on its fifth day in the green at the time of writing. In fact, this was the first significant bullish attempt in the past four weeks. At the time, it was valued at $23.59, up 19% from the weekly low.
Source: TradingView
The last time the market thought AVAX had bottomed was in June. This was followed by a 50% increase. This time around, AVAX is trying to bounce back from a lower price, which could make it even more attractive. Furthermore, the RSI just topped 50%, suggesting that long-term momentum could once again shift in favor of the bulls.
AVAX’s $22.95 level represents a 42% discount from the YTD high. So buyers who buy at or around press-time price levels could still have a chance to make decent gains if the rally continues. In terms of profitability, 3.87 million addresses (44.09%) were profitable with AVAX after the most recent rally.
On the contrary: 4.76 million addresses (54.15%) were loss-making and 154,800 (1.78%) addresses were at break-even level.
Source: IntoTheBlock
While the statistics confirmed that a majority suffered losses, it also showed that a significant number of holders made profits despite recent lows.
This can be interpreted as a sign of healthy demand, even at recent levels.
Avalanche addresses reached historic highs
Although AVAX was heavily discounted this year, native blockchain Avalanche has made gains in other areas.
Most notably, address growth has been positive over the years, with the total number of addresses with a balance reaching 8.75 million addresses. That’s not all, because the total number of addresses without a balance reached a peak of 16.7 million.
Source: IntoTheBlock
For perspective, Avalanche’s total number of addresses with balances has increased by 2.22 million so far this year. In contrast, addresses without balances have only increased by 750,000 addresses.
Avalanche will continue this positive growth trajectory with developments such as the following. For example – Agora just launched its AUSD stablecoin on the Avalanche network. This development highlights the growing expansion of the Avalanche DeFi ecosystem.
Moreover, Avalanche was also recently released the first blockchain to have a video game developed on its network – launched on Xbox and PlayStation 5.