In the last day of trading, Avalanche (AVAX) went up by 13.29%, making it the top performer among the top 10 cryptocurrencies. This means it gained more value compared to others in the market.
CoinMarketCap reports that the ninth biggest cryptocurrency surged to its highest price in 10 days, reaching $36. This increase in price was accompanied by a 34% rise in the amount of trading happening each day.
Avalanche (AVAX) Rebound Boosts Expectations
The recent rebound in Avalanche (AVAX) has raised hopes for a sustained increase in its price. This comes after the cryptocurrency faced consistent selling pressure since the start of the year. The surge in price could be attributed to heightened activity on The Arena, a decentralized social app built on the Avalanche platform.
The decentralized social app, The Arena, experienced a significant increase in activity, leading to a surge in the project’s total value locked (TVL) by 27% in the last 24 hours. Currently, The Arena stands as the fourth-largest SocialFi dApp, with deposits exceeding $798,000.
Source: DeFiLlama
The Arena initially gained traction last October, amassing $2.78 million in TVL within just 10 days of its launch. However, the project encountered exploitation issues shortly after, resulting in a sharp decline in interest. Despite this setback, proponents of the app remain optimistic about its future prospects.
As AVAX serves as the utility token for The Arena, its value is closely tied to the success of the project. With the recent rebound in AVAX’s price, supporters of The Arena are hopeful that this could mark the beginning of better times ahead, potentially driving further growth for both the app and the cryptocurrency.
AVAX Price Surge Sparks Derivatives Market Excitement
The recent surge in the price of AVAX has not only attracted attention in the spot market but has also ignited excitement in the derivatives market. Coinglass analysts report a significant increase in Open Interest (OI) in AVAX futures, which surged by an impressive 20% to reach $239 million within the last 24 hours.
Source: Coinglass
In addition to the surge in OI, there has been a notable shift in sentiment among derivatives traders. The number of bullish bets taken on AVAX has surpassed bearish ones over the past 24 hours. This indicates that a growing number of traders are optimistic about AVAX’s short-term prospects, reflecting the overall bullish sentiment surrounding the cryptocurrency.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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