After Solana, can memecoins rescue AVAX’s price now?

  • Stablecoin activity on the network soared.
  • Price of AVAX grew, however, interest in Avalanche NFTs declined.

Avalanche [AVAX] has been trying to mark its territory in the competitive altcoin space for quite some time. However, it has not been able to gain as much traction as its counterparts.

Surge in stablecoin volume

Recent data indicated that the tides were turning in Avalanche’s favor. Avalanche observed the highest level of stablecoin activity recorded since 2023. This indicated more activity and liquidity present on the network.

One of the reasons for the rise in stablecoin volume would be the growing number of memecoins gaining popularity on the Avalanche network.

Unlike other networks such as Solana, the memecoins on the network are being backed by institutions such as the Avalanche Foundation.

The recent memecoin rush program launched by the Avalanche Foundation aims to attract more users to the Avalanche network through memecoins and also aid in adding more liquidity to their ecosystems.

If the bet made by the Avalanche Foundation pans out, the network could see further growth both in terms of its ecosystem and price.

NFT interest declines

However, coming to other aspects of the Avalanche ecosystem, it was seen that interest in its NFT sector had declined. Blue chip Avalanche NFT collections such as LoFi leopards and Chad Doge witnessed a decline in terms of volume.

Moreover, the amount of new NFTs being minted on the Avalanche network had also declined.

Screenshot 2024 03 22 at 5.49.39 PM

Source: AVAXNFTStats

Despite the decline in NFT interest, AVAX’s price was doing relatively well. At press time, AVAX was trading at $56.09 and its price had grown by 1.29% in the last 24 hours.

The price of AVAX has been growing for quite some time. After the 12th of March, the price of AVAX rallied by 14% while exhibiting multiple higher highs and higher lows, establishing a bullish trend.

After testing the resistance level of $65.39, the price of AVAX retraced to $50.84. Despite the dramatic correction, the decline in price wasn’t significant enough for a trend reversal. If the price of AVAX re-tests the $57.04 level, it may rally again in the future.

Realistic or not, here’s AVAX market cap in BTC’s terms

The OBV(On Balance Volume) of AVAX also grew along with the price implying an increased buying pressure for AVAX.

However, the CMF(Chaikin Money Flow) of AVAX fell which could mean that AVAX’s ride to the top won’t be very smooth.

AVAXUSDT 2024 03 22 18 01 50

Source: Trading View


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