Avalanche sees a rise in staking activity
Avalanche is a blockchain platform designed to enable the creation of decentralized applications. It addresses many of the limitations faced by older blockchain platforms like Bitcoin and Ethereum, particularly in terms of transaction speed, scalability, and consensus mechanisms. Avalanche can process over 4,000 transactions per second, making it one of the fastest smart contract platforms in the industry.
The platform also allows the creation of custom blockchain networks, or subnets, each with its own specific rules, parameters, and virtual machines. This flexibility gives developers the ability to create decentralized apps (DApps) that are tailored to particular use cases, while still benefiting from Avalanche’s consensus and security features. As Avalanche’s popularity continues to rise, its adaptability positions it as a top choice for enterprises, governments, and institutions.
Avalanche ranks second behind Solana
In the past 10 days, AVAX has experienced a growth of more than 60%, making it the second most successful mega-cap cryptocurrency of the month, trailing only Solana (SOL). A deeper analysis of on-chain data reveals that this price surge is not just a result of a broader altcoin market rally but is instead driven by strong underlying network activity. Crypto analyst Hitesh Malviya highlights that the current rise in AVAX’s price is propelled by real network activity rather than speculative trading.
Avalanche burns 100% of the transaction fees it collects, and the increased burn rate observed during the current bull phase suggests that the price movement is fueled by genuine transactional demand. Notably, over 36 million AVAX tokens were staked in the first two weeks of November 2023 to either secure the network or participate in specialized ecosystem activities.
When staking increases during a market rally, it is generally viewed as a bullish indicator. Staking locks tokens out of circulation temporarily, reducing the overall supply and, under conditions of high demand, this decrease in market supply can drive prices higher. The recent 70% surge in AVAX’s price corresponds with a 16% increase in staking activity, further validating this bullish trend.
Tech company adopts Avalanche for profit-sharing digital asset
The increasing popularity of GameFi projects is expected to encourage more AVAX holders and validators to maintain their token staking. Should the demand continue, AVAX’s price could experience further gains in the coming weeks. Another exciting development is the recent announcement by tech company Republic, which has selected Avalanche as the platform to launch its new profit-sharing digital asset, the Republic Note (R/Note).
The R/Note is a revenue-sharing digital security backed by Republic’s extensive private equity portfolio, which includes over 750 assets. According to Republic, Avalanche was chosen due to its scalability, fast transaction speeds, and its ability to facilitate smooth and low-cost transactions. Additionally, Avalanche has formed partnerships with renowned brands like Amazon Web Services and Mastercard, reinforcing its technical capabilities.
The Republic Note is set for public listing in December, though its pre-sale has already raised over $30 million with participation from thousands of individual retail investors. The collaboration between Republic and Avalanche is expected to have a positive effect on AVAX’s price, as the Republic Note sets the stage for broader adoption by a global investor base.
Technical analysis of Avalanche (AVAX)
Since November 1, 2023, AVAX has surged from $10.87 to $24.70, with the current price standing at $21.12. Despite a minor correction, the bullish momentum persists. As long as the price remains above $20, AVAX continues to fall within the BUY-ZONE.
Key support and resistance levels for Avalanche (AVAX)
Looking at the chart from May 2023, we can identify significant support and resistance levels that traders can use to predict potential price movements. Based on technical analysis, bulls are currently in control of AVAX’s price action. If the price breaks above $25, the next resistance level could be $30. On the other hand, the key support level is $20, and if the price drops below this level, it could trigger a “SELL” signal, with the next target at $18. If AVAX falls below $15, which is also a strong support zone, the next target could be around $12.
Factors supporting the rise of Avalanche (AVAX)
On-chain metrics, including the surge in staking and the increasing network activity driven by GameFi adoption, are essential factors propelling the ongoing price rally for AVAX. With these trends showing continued upward momentum, the prospects for further price gains remain strong. Additionally, the growth of Bitcoin and the broader cryptocurrency market is positively influencing AVAX’s price trajectory.
Factors that could trigger a decline in Avalanche (AVAX)
The potential decline of AVAX could be influenced by various factors, including shifts in market sentiment, regulatory changes, technological advancements, and macroeconomic developments. While there is renewed interest from AVAX whales, signaling growing trust in the project, investors should not overlook the inherent volatility of cryptocurrency markets.
Positive developments may drive prices higher, but they also carry risks. Given AVAX’s unpredictable nature, it remains a high-risk investment. Investors should exercise caution and stay alert to the support level at $20, as any breach below this could lead to further price declines, with $18 or even $15 as potential targets.
Прозрения от анализатори и експерти
AVAX has outperformed Bitcoin and the broader cryptocurrency market in recent weeks, with its value increasing by over 80% since November 2023. Crypto analyst Hitesh Malviya attributes this surge to strong network activity, rather than speculative trading. During the first half of November 2023, more than 36 million AVAX tokens were staked to either secure the network or participate in specialized ecosystem activities.
On-chain data reveals that the surge in staking and growing network engagement, particularly due to the rise of GameFi projects, are significant catalysts fueling the current rally. With these positive indicators, AVAX’s price looks poised for further gains. However, investors should adopt a cautious approach and remain mindful of the external factors, such as market sentiment, regulatory changes, and macroeconomic trends, that will continue to influence AVAX’s price movements.
Отказ от отговорност: Cryptocurrencies are highly volatile and not suitable for all investors. Never invest money you cannot afford to lose. The content on this website is for informational purposes only and should not be considered financial or investment advice.
