The approval of a spot Bitcoin ETF last week has not sparked the anticipated excitement in cryptocurrency prices, leading to a bearish sentiment in the market. Following Bitcoin’s recent plunge, the crypto market has become more subdued, with a noticeable decrease in interest and activity in the altcoin sector. Despite this, Avalanche (AVAX) has emerged as an altcoin to watch in 2024, following its impressive surge alongside SOL last year.
Despite the general decline in altcoin interest, Avalanche’s network activity has seen an uptick. The increase in Daily Active Addresses and transactions at the start of 2024 indicates sustained engagement on the Avalanche network. Investors attribute this to the network’s subnets, which alleviate scaling challenges by offloading activities from the main chain, offering scalability and customization.
Avalanche is also forging partnerships with major financial institutions like Citibank and JP Morgan, highlighting the network’s prominence. These collaborations suggest a growing institutional interest in Avalanche’s potential.
As for AVAX’s price, it has recently seen a modest decline of 0.67% to $35.5, indicating a continuation of the downward trend that began last month. The current Relative Strength Index (RSI) of 43.63 suggests a slight dominance of selling pressure in the market.
Moreover, AVAX’s trading volume has dropped by 0.67% to $511 million, with an overall market cap just under $13 billion, pointing to a decrease in market interest. Social Volume and Weighted Sentiment for AVAX have also decreased, reflecting uncertainty among investors. However, with the upcoming Bitcoin halving and increased social adoption, AVAX may overcome these challenges and remain a strong contender for significant growth in 2024.