{"id":548992,"date":"2023-02-07T21:30:00","date_gmt":"2023-02-07T18:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/avalanche-avax-price-is-up-but-do-fundamentals-support-the-rally\/"},"modified":"2023-02-07T21:30:00","modified_gmt":"2023-02-07T18:30:00","slug":"avalanche-avax-price-is-up-but-do-fundamentals-support-the-rally","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/avalanche-avax-price-is-up-but-do-fundamentals-support-the-rally\/","title":{"rendered":"# Avalanche (AVAX) price is up, but do fundamentals support the rally?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3df33b59d25\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3df33b59d25\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/avalanche-avax-price-is-up-but-do-fundamentals-support-the-rally\/#%E2%80%9D_Avalanche_AVAX_price_is_up_but_do_fundamentals_support_the_rally_%E2%80%9C\" >&#8221; Avalanche (AVAX) price is up, but do fundamentals support the rally? &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/avalanche-avax-price-is-up-but-do-fundamentals-support-the-rally\/#AVAX_fees_from_DeFi_are_up\" >AVAX fees from DeFi are up<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/avalanche-avax-price-is-up-but-do-fundamentals-support-the-rally\/#Active_addresses_and_users_are_down\" >Active addresses and users are down<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/avalanche-avax-price-is-up-but-do-fundamentals-support-the-rally\/#AAVE_dominates_Avalanche_DApps\" >AAVE dominates Avalanche DApps<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Avalanche_AVAX_price_is_up_but_do_fundamentals_support_the_rally_%E2%80%9C\"><\/span>&#8221; Avalanche (AVAX) price is up, but do fundamentals support the rally? &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-4bbf85c5>Avalanche (AVAX) witnessed a meteoric start to 2023, gaining 98% in 30 days, and traders are now curious about whether the rally will extend throughout February. AVAX\u2019s year-to-date gains for 2023 have outpaced those of Bitcoin (BTC) and Ether (ETH).<\/p>\n<p>Recent reasons for AVAX\u2019s rally can be attributed to an\u00a0Amazon partnership announcement on Jan. 11. The partnership is meant to easily deploy nodes on the Avalanche blockchain with Amazon Web Services (AWS). Ava Labs, which supports the Avalanche ecosystem,\u00a0hopes the partnership increases blockchain usage for enterprises and governments. <\/p>\n<p>While AVAX price has benefited from the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>, some analysts predict that the move could have been a\u00a0bull trap. <\/p>\n<p>Let\u2019s dig into the fundamentals to see if on-chain network activity supports the recent AVAX rally. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"AVAX_fees_from_DeFi_are_up\"><\/span>AVAX fees from DeFi are up<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After the AWS news, AVAX price was not the only metric seeing a quick rise. On Jan. 14, Avalanche network hit a year-to-date high of $31,218 AVAX fees received. The increase in fees compared to the previous 30 days is 59%, signaling that positive price <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>reciation helped boost the fees that the network received.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/c64432c3-b3d9-4b68-b8d0-219d4eba2f81.png\"><figcaption style=\"text-align: center;\"><em>Avalanche network fees and AVAX price. Source: TokenTerminal<\/em><\/figcaption><\/figure>\n<p>While the Avalanche fee base is increasing, it still lags behind top EVM-compatible blockchains like Ethereum, Binance Chain (BNB), Optimism (OP) and Polygon (MATIC). Over the past 30 days, the fees Avalanche has generated rank 9th out of all blockchains. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/f5c84ac6-2b2b-4c82-9c3f-e20237e8c306.png\"><figcaption style=\"text-align: center;\"><em>Top blockchains sorted by fees. Source: TokenTerminal<\/em><\/figcaption><\/figure>\n<p>Notably, layer-2 competitor Polygon earned close to four times the amount of fees compared to Avalanche. Even with the astounding growth thaAvalanche has experienced in 2023, the network will need to substantially increase fees to overtake more blockchains. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Active_addresses_and_users_are_down\"><\/span>Active addresses and users are down<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A sign of blockchain health is the number of active addresses, users and transactions. Despite reaching a year-to-date high on Jan. 18 of 1.84 million transactions, Avalanche\u2019s transaction count is trending down. <\/p>\n<p> A similar downtrend is witnessed when looking at active addresses in the Avalanche ecosystem. Active addresses denote transactions taking playing on unique wallets for a given day. After reaching a year-to-date peak of 54,978 active addresses on Jan. 31, only 34,624 active addresses were registered the following day. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/e13e87dc-8e2e-4c85-bd9d-6b40408d9eeb.png\"><figcaption style=\"text-align: center;\"><em>Active addresses and transactions. Source: Avalanche<\/em><\/figcaption><\/figure>\n<p>The downtrend in Avalanche activity is creating further separation between other blockchains. According to TokenTerminal, Avalanche\u2019s all-time high (ATH) number of daily active users is 131,000, which is dwarfed by Polygon\u2019s ATH of 737,000. Avalanche is now far from its all-time high of daily users, registering only 44,000. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/be417a92-d7fe-4737-8710-2cefd0ff5f16.png\"><figcaption style=\"text-align: center;\"><em>Blockchains sorted by daily active users, Source: TokenTerminal<\/em><\/figcaption><\/figure>\n<p>For blockchains to create sustainable fees, there needs to be daily active users participating on the network. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"AAVE_dominates_Avalanche_DApps\"><\/span>AAVE dominates Avalanche DApps <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The active users on Avalanche seem to have a preference for using Aave (AAVE) on the AVAX blockchain. Over 36% of all Avalanche transactions flow through the Aave protocol. Investors have staked over $353 million on Aave\u2019s Avalanche version, far surpassing the second-most popular protocol by verified total locked value (TVL), the Trader Joe decentralized exchange (DEX). <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/3de605dc-1ec2-4b7a-86ce-6854fc42e999.png\"><figcaption style=\"text-align: center;\"><em>Top Avalanche DApps. Source: DefiLlama<\/em><\/figcaption><\/figure>\n<p>While Aave and Trader Joe are leading the Avalanche blockchain, when looking at DEX activity on other blockchains, they witness far less trading volume. DEX volume directly correlates to the fees that a protocol receives. <\/p>\n<p>Ethereum DEX activity leads the way with over $1.6 billion in daily volume, whereas Avalance only sees around $104 million. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/0a701bc1-a5bd-496f-a8ff-20aca143060d.png\"><figcaption style=\"text-align: center;\"><em>DEX activity by blockchain. Source: DefiLlama<\/em><\/figcaption><\/figure>\n<p>While Avalanche is currently witnessing immense growth from the AWS announcement, the blockchain is still small compared to competitors. The goal of the AWS partnership was to help increase network activity by reducing barriers to entry. Reaching the goal may increase Avalanche adoption but other ecosystems seem to be out to a large and early lead. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\">The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/avalanche-avax-price-is-up-but-do-fundamentals-support-the-rally\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Avalanche (AVAX) price is up, but do fundamentals support the rally? &#8220; Avalanche (AVAX) witnessed a meteoric start to 2023, gaining 98% in 30 days, and traders are now curious about whether the rally will extend throughout February. AVAX\u2019s year-to-date gains for 2023 have outpaced those of Bitcoin (BTC) and Ether (ETH). Recent reasons&#8230;<\/p>\n","protected":false},"author":1,"featured_media":548993,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/125e0c63-74a7-4f28-a36e-8256270f3b8c.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[92664,74867,88119,120396,74862,74863,74877,73785],"class_list":["post-548992","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-aave","tag-altcoin","tag-altcoin-watch","tag-avalanche","tag-bitcoin","tag-cryptocurrencies","tag-decentralized-exchange","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/548992","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=548992"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/548992\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/548993"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=548992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=548992"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=548992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}