Avalanche blockchain’s native coin, AVAX price action has created a double bottom, which is typically a sign of bullish movement. Additionally, the price of this token has been on the rise as it currently trades at $19.69. This equals a 32.95% Avalanche price surge over the past month. This development can be partly attributed to the accumulation trend by AVAX whales.
Is the Octane Upgrade Fueling AVAX Whales to Buy Big?
Based on the IntoTheBlock data, the accumulation of AVAX whales has been increasing over the past weeks. Based on this data, whales were holding nearly 26.53 million tokens in early January. However, now this amount has turned to 38.47 million, which equals over $231.5 million of new purchases. As such, the recent surge from last month’s low could be attributed to this whale activity. There are also other possible catalysts for this price surge, such as a new Avalanche chain development and the release of the Octane upgrade.
The Octane upgrade has reportedly decreased transaction fees and swapping fees by 30% and 97%, respectively. Based on the market data, this upgrade could not keep the short-term holders. This group has increased its token holdings exponentially and has been selling science during the Avalanche price surge. However, the HODLers have been increasing their tokens as well, which has subsided the short-term holders’ selling pressure. The data from the AVAX crypto spot shows that there had been $10.63 million of inflows on April 6. This amount, however, has decreased to $1.4 million as of April 18, which is a bearish sign.
Is AVAX Gearing Up for a Breakout or a Breakdown?
The mixed signals from the Avalanche network markets keep piling up as the open interest has experienced growth. AVAX’s open interest has increased from $297.44 million to $423.55 million in the span of 8 days between April 12 and 18. This had caused a decline in selling pressure, consequently increasing accumulation and the AVAX price. However, the general demand for this token did not increase; investors were doubting a prolonged rally. Despite all this, the increase in purchases by AVAX whales can be a signal of further price increases.
What’s Behind the Drop in Avalanche’s DeFi Dominance?
Additionally, the MFI has also given a bullish sign, as the liquidity inflows have been positive for AVAX. This positive flow of liquidity has been ongoing since April 7, although the price movement has been rather underwhelming. Additionally, the TVL for the Avalanche network has declined since its recent peak of $1.64 billion. It currently stands above the $1 billion amount, which is still impressive, despite the recent declines. The all-time peak was recorded in 2021 when the TVL reached as high as $13.9 billion in the crypto’s peak popularity.
There has also been a big jump in DEX volumes recorded over Q4 2024. This metric has increased to $662 million, which shows that Avalanche has been successful in the DeFi space. However, the bearish market has also caused the amount of DEX volumes to drop as low as $84.38 million. Additionally, the Daily transactions and stablecoin market cap metrics have also dropped since last year’s surge. A peak of $2.43 billion marks the recorded amount for the Stablecoin market cap in December. However, now it stands at $1.73 billion.
Is Now the Right Time to Bet on AVAX’s Future Growth?
As such, with the increase in whale accumulation and the Octane Upgrade significantly enhancing the blockchain, AVAX is set to shine. However, as we go through the data, we also see some bearish data points. As we saw, the DEX volume for this token and the spot inflows have decreased significantly. With all that said, because of the macroeconomic developments, the price of AVAX crypto is likely to continue to grow.
Source: Coinfomania / Digpu NewsTex