The market intelligence platform IntoTheBlock has explained why Avalanche (AVAX) could possibly be a key network to observe within the cryptocurrency sector.
Avalanche Has Been Witnessing Consistently High Activity Recently
In a latest post on X, IntoTheBlock has discussed about how two network-activity related metrics have been like for Avalanche recently. The indications in query are the Energetic Addresses and Recent Addresses.
The primary of those, the Energetic Addresses, measures the overall variety of AVAX addresses which are participating in some type of transaction activity on the network every single day. The metric includes each senders and receivers in its count.
The overall unique variety of lively addresses could be considered akin to the unique variety of users visiting the blockchain, so the indicator principally tells us in regards to the level of traffic that the cryptocurrency is witnessing.
The opposite metric, the Recent Addresses, tracks the day by day count of the wallets becoming lively for the very first time. That’s, it tells us about what number of users are making their first transfers on the blockchain.
Recent addresses are generated each time latest investors join the network or old ones who had sold earlier return. In addition they arise when existing users create latest wallets for privacy or reconsolidation purposes.
Basically, all of those are occurring directly, meaning that some net adoption of the cryptocurrency could possibly be assumed to be happening each time the Recent Addresses registers a spike.
Now, here is the chart shared by the analytics firm that shows the trend within the two indicators for Avalanche over the past yr:
Each of the metrics appear to have been at high levels in recent weeks | Source: IntoTheBlock on X
From the graph, it’s apparent that the Avalanche Recent Addresses and Energetic Addresses had each been following an overall downwards trajectory during 2024, until a pointy revival in activity occurred in December, where the metrics spiked.
This month, the indications have seen even larger spikes, a possible sign that the adoption of the cryptocurrency is accelerating and investors have gotten increasingly engaged on the network.
The recent highs within the indicator haven’t only been higher as in comparison with last yr, but in reality also higher than the height of the 2021 bull market. “This positions the @avax network as a key one to observe, should more users enter the crypto market,” notes IntoTheBlock.
Historically, adoption is something that has proven to be constructive for cryptocurrencies, but the results may only grow to be apparent in the long run. High activity, then again, tends to reflect immediately, as a considerable amount of users making moves provides for the right environment for volatile moves to occur in. Such volatility, nevertheless, isn’t crucial to be bullish.
AVAX Price
On the time of writing, Avalanche is trading around $40, up greater than 8% over the past seven days.
Looks like the value of the coin has been on the rise recently | Source: AVAXUSDT on TradingView
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com