Avalanche's AVAX token has seen a slight 0.48% price decline over the past 24 hours, dropping from $9.94 down to $9.89. Despite this minor setback, AVAX remains in a strong uptrend over the past week, month and 6 months. Let's take a closer look at the key metrics and trends for AVAX.
With a market capitalization of $3.50 billion, AVAX is currently the 16th largest cryptocurrency by market cap. Its 24 hour trading volume stands at a healthy $34.17 million, showing there is decent interest and liquidity for this altcoin.
Digging into the price action, AVAX is down 0.48% over the last 24 hours, but remains up 0.16% over the past 7 days. This shows bulls are still in control of the short-term trend. Zooming out further, AVAX has declined 21.91% over the past month, which can be attributed to the broader crypto market sell-off. However, it is still up a whopping 68.53% over the last 6 months, highlighting its standout performance during the crypto bear market.
So what's driving AVAX's continued strength and upside potential? There are a few key factors:
AVAX's Technical Advantages for DeFi
As a Layer 1 blockchain focused on decentralised finance (DeFi) applications, Avalanche offers some unique technical advantages. Its consensus protocol allows for 4,500 transactions per second and sub-second confirmation times. This makes Avalanche well-suited for building fast, scalable DeFi apps. AVAX powers the network by allowing users to pay fees, secure the platform and participate in staking.
Growing Developer Activity
According to tracker DeFi Llama, Avalanche has over $3 billion in total value locked (TVL) across its various DeFi protocols. This puts it behind only Ethereum and BNB Chain for TVL. Developer activity is ramping up, with new DApps launching on Avalanche each week. Increased usage and transactions drives demand for the AVAX token.
Major Protocol Upgrades on the Horizon
The Avalanche team continues to innovate, with major protocol upgrades slated for September 2023. Named 'Blizzard', this upgrade will improve transaction throughput and slash gas fees. This will boost Avalanche's capacity to become the top Layer 1 chain for DeFi and Web3 applications. The upgrade shows the project is still early in its growth journey.
Attractive Staking Rewards
AVAX currently offers staking yields of around 8.5%, allowing holders to earn attractive passive income. There is also strong demand among institutions to stake AVAX tokens and run validator nodes on the network. With total staked value topping 3 million AVAX, staking helps reduce available supply.
Is Avalanche's Rally Over Extended?
With AVAX up over 68% in 6 months, some may wonder if its rally is overextended and due for a deeper pullback. However, when we analyze key on-chain and development activity metrics, the uptrend still appears intact.
Avalanche has seen a 3x rise in daily active addresses over the past year, now topping over 50,000 per day. This shows surging network usage as new dApps launch. Transactions per day have also risen 60% since July, indicating growing adoption.
With its Blizzard upgrade on the horizon, staking activity ramping up, and new DeFi apps launching frequently, Avalanche appears well-positioned for continued growth.
As long as Bitcoin avoids a deeper drop below $18,000, appetite for altcoins like AVAX should remain strong. This technical analysis indicates Avalanche's rally still likely has room to run through 2023 before becoming dangerously overheated.
Will We See $15+ AVAX by Early 2024?
Given Avalanche's positive fundamentals and bullish technicals, there is a strong probability AVAX could surge above its previous all-time high of $15+ by early 2024.
With the Blizzard upgrade launching later this month, transaction speeds will double and fees will fall drastically. This will kickstart a new wave of DeFi user adoption, driving increased demand for AVAX.
Additionally, as institutional capital continues flowing into the crypto sector, Avalanche stands out as a prime destination due to its high staking rewards and strong developer activity. The Ethereum bridge and cross-chain interoperability also make AVAX attractive to large investors.
If the overall crypto market cap returns to growth mode by mid-2023, this rising tide should lift AVAX even higher. With Bitcoin eying $30k+ in the coming months, speculative fervour is likely to return - benefitting top altcoins like AVAX.
In summary, with its solid technical structure, significant upcoming catalysts, robust on-chain metrics and crypto market tailwinds, a surge to $15+ AVAX looks achievable by early 2024 if not sooner. This would represent a 50%+ gain from current levels.