Following false announcements about Spot BTC ETF applications, the cryptocurrency market, including Avalanche (AVAX), experienced various reactions with some altcoins witnessing significant surges. AVAX’s recent price increase has been notable, rising by 12.9% in the last 24 hours to trade at $38.53, but a closer look at its price movement over the past month reveals a downtrend with lower lows and lower highs. The Relative Strength Index (RSI) for AVAX also showed a decline, signaling a decrease in upward momentum.
Despite an increase in social volume around AVAX, indicating more discussions and interactions, sentiment has decreased, suggesting persistent negativity on social networks and platforms. This could hinder AVAX’s growth potential in the future. Amidst price movements, the Avalanche network saw an increase in NFT activity, with the SteadyNFT collection generating $430,000 in revenue in just 6 minutes.
The new NFT business is adding significant volume and activity to the ecosystem, potentially positively impacting the Avalanche network and attracting more creators to the platform. Beyond NFTs, overall activity and transaction volume on the Avalanche network have shown growth in recent months, which could strengthen AVAX’s position in the broader crypto environment.
While the DeFi sector, measured by Total Value Locked (TVL) and Decentralized Exchange (DEX) volumes, is gaining momentum, development activities have seen a decline. This decrease in development activities could indicate potential delays in new updates and upgrades on the network, potentially making it harder for Avalanche to attract new users in the future.