AVAX Rides The Crypto Avalanche To Success: Market Cap Skyrockets By 344%
February 16 2024 - 5:00PM
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Avalanche (AVAX), the blockchain platform known for its scalability
and infrastructure, made significant strides in the fourth quarter
(Q4) of 2023. According to a report by Messari, AVAX emerged as one
of the best-performing tokens, driving the protocol to record
notable gains in key metrics. Record-Breaking Milestones For
Avalanche The report shows that AVAX experienced a notable
increase in its market cap, which climbed 344% quarter-over-quarter
(QoQ) and 326% year-over-year (YoY), reaching $14.4 billion at the
end of the year. This large increase propelled AVAX’s market cap
rank among all tokens from 20 to 9, up 11 spots (currently 10th
behind Cardano (ADA). Related Reading: BONK Price Jumps Over 30% As
Robinhood, Revolut Listing Speculations Gain Traction One of the
driving factors behind Avalanche’s significant revenue growth was
the surge in inscriptions, particularly Avascriptions (ACS-20
tokens). These on-chain call data transactions saw a
significant boost, resulting in a substantial increase in revenue.
From November to December, Avalanche witnessed a surge in revenue,
with a 2,874% increase measured in USD, from $1.9 million to $56.5
million. The surge in revenue was accompanied by a significant
increase in daily transactions, which jumped 450% QoQ to 1.5
million. The emergence of Avascriptions also drove the majority of
these transactions. Avalanche’s C-Chain experienced a
record-breaking 6.3 million transactions, with nearly 6.1 million
being inscriptions. This marks the highest number of transactions
ever recorded in a single day for Avalanche. While C-Chain saw a
50% QoQ decrease in daily active addresses, this was primarily due
to decreased activity on LayerZero – a bridge between different
blockchains. However, the report highlights that Avalanche saw a
significant increase in active validators, growing 20% QoQ from
1,374 to 1,651 validators. According to Messari, this growth
in validators, coupled with an 11% QoQ increase in AVAX stakes,
indicates a promising long-term appetite for AVAX in the coming
year. Avalanche’s TVL Surges 78% Avalanche’s Total Value Locked
(TVL) denominated in USD experienced a substantial 78% QoQ
increase, reaching $1.03 billion by the end of Q4 2023. This
positioned Avalanche as the 7th chain by TVL, denominated in
USD. However, TVL-denominated in AVAX decreased by 71% QoQ,
primarily due to AVAX price appreciation driving the increase in
USD-denominated TVL. The report also sheds light on the performance
of various protocols on Avalanche. AAVE, the largest protocol by
TVL, witnessed a 60% QoQ growth, while Benqi and Trader Joe
demonstrated strong gains of 205% and 131% QoQ, respectively.
Together, these three protocols accounted for 79% of Avalanche’s
TVL, showcasing their dominance in the ecosystem. Related Reading:
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Momentum Smaller-sized protocols, such as Pangolin and GMX, also
showcased impressive growth, while Balancer, aided by Benqi’s sAVAX
liquidity pool, attracted significant TVL on Avalanche.
Additionally, Q4 witnessed a surge in average daily DEX volumes,
rising by 245% QoQ. Analysis of the 1-day chart reveals that
Avalanche’s token trading pair AVAX/USD experienced significant
growth during Q4, breaking free from a prolonged period of sideways
price action. However, following a notable uptrend that propelled
the token to reach $50, its highest level in 20 months, on December
24, AVAX underwent a sharp correction, plunging to the $27 price
level. The cryptocurrency has rebounded in response to
Bitcoin’s (BTC) rally and the prevailing bullish sentiment in the
market. Over the past fourteen days, AVAX has witnessed a 13% price
increase, currently reclaiming the $40 zone. Featured image from
Shutterstock, chart from TradingView.com
Avalanche (COIN:AVAXUSD)
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