In the second quarter of 2023, cryptocurrency data company Nansen reported an increase in on-chain activity for Avalance (AVAX), a competitor of Ethereum (ETH).
Avalanche’s C-Chain, being the project’s default smart contract blockchain, had daily transactions ranging from 200,000 to 550,000 during the quarter.
Nansen’s analysis shows that this is almost twice the volume of transactions in Q1.
The data firm also observed a steady rise in daily active addresses for Avalanche throughout Q2, with a peak of 117,304 on June 14th.
Nansen said the following:
“The steady increase of active addresses, coupled with the rise in daily transactions, is indicative of healthy growth within the ecosystem and showcases the flourishing community supporting Avalanche.”
Q2’s surge in on-chain activity wasn’t reflected in AVAX’s price, however. The 19th-ranked crypto asset by market cap dropped from trading around $17.79 at the beginning of the quarter in April to $13.02 at the end of June, a decrease of nearly 27%.
As of now, Avalanche’s native token is being traded at a price of $12.40.
According to the DeFi Llama, a decentralized finance tracker, the total value locked (TVL) of Avalanche has decreased from $867 million on April 1st to $693.94 million on June 30th, which is almost a 20% drop. As of writing this, the current TVL of the platform is $608.82 million.
AVAX in the news
A popular trader on Twitter, Michaël van de Poppe, has analyzed the current position of AVAX and suggests that it is showing bullish signs after surpassing the resistance level of $14.
However, he also believes that there may be a cooling-off period before the next upward trend.
Van de Poppe recommends purchasing the dip towards $16 if consolidation occurs in the areas of $12.70-$12.95. At present, AVAX is being traded at $13.33.
Van de Poppe has also studied Zilliqa (ZIL), a blockchain designed for business solutions, and predicts a potential decline to around $0.018 after a 60% increase in value within a month.
