The price of Avalanche’s AVAX coin has soared more than 34% over the past week. Here are three reasons for the surge.
Layer-1 blockchain Avalanche has seen a significant price increase within the past few days, thanks to some factors. Let’s take a look at the drivers behind the recent surge.
Why is Avalanche Increasing?
Avalanche saw massive increases late last year in several projects building on its mainnet. Among them were game-themed and exchange-based protocols. These performances skyrocketed Avalanche’s market capitalization, bringing it to the position of the 9th largest cryptocurrency.
However, with recent rallies seen in other projects like memecoins Dogecoin (DOGE) and Shiba Inu (SHIB), Avalanche fell to a ranking of #12. The smart contract-enabled blockchain is gradually regaining its position among the top 10 cryptocurrencies. With a market cap difference of around $1 billion between DOGE and AVAX, the latter is likely to claim the position of the 10th largest crypto asset as more funds trickle in.
Avalanche owes its current meteoric performance to three factors. One is the increased activity of large AVAX holders. According to metrics from the blockchain analytics platform IntoTheBlock, the daily trading volume of large transactions on the blockchain reached $329 million earlier this week. This is the highest metric seen on the blockchain since December 2023.
A second factor fueling Avalanche’s performance is the network’s embrace of GameFi, a fusion of online gaming and decentralized finance (DeFi) capabilities. Earlier this week, the popular 2D game MapleStory, developed by South Korean game studio Nexon, was integrated with the Avalanche blockchain. Following the announcement, a decent 13% AVAX price surge ensued.
A third reason for Avalanche’s latest surge is the overall performance of the global crypto market. Over the past few months, the crypto market has recorded significant uptrends, thanks to the massive performances of prominent assets like Bitcoin, Ethereum, and Solana. Today, the global crypto market is valued at $2.85 trillion, inching closer to its peak of over $3 trillion.
AVAX Up 6% Within 24 Hours
According to data from the price tracking website CoinStats, AVAX has risen by 6% in the last 24 hours, bringing its current trading price to around $53.
The post Here’s Why Avalanche (AVAX) Pumped More Than 34% Over the Past Week appeared first on Coinfomania.
