Avalanche, the layer 1 blockchain developed by Ava Labs, has seen a significant increase in active addresses over the past month. On-chain data reveals that daily active users on the network doubled in June, well above the average recorded over the last year. Most of the engagement has been around decentralised exchanges, including retail-focused DEX Trader Joe and Web3 protocol Galxe. According to the Avalanche explorer Avascan, the network recently hit 1.21 million monthly active addresses.
But can AVAX prices benefit from the network activity as the platform looks to reclaim its market share through a boost to its DeFi ecosystem?
TVL (total value locked) on Avalanche has decreased from $13.93 billion in December 2021 to currently around $1.4 billion. AVAX has also traded lower over the past week, with buyers attempting to keep the bears off near $12.50. The crypto token is down 3% in the past 24 hours and 5% in seven days.
The daily chart shows the RSI is below the 50-mark, suggesting the buying pressure which pushed AVAX from $11.45 to around $13.70 has reduced. The MACD is also indicating weakness on the side of buyers. A positive flip in the indicators would indicate potential gains, while the opposite could result in the token dropping to its key support range around $11.20 – $9.50.
A new surge in Bitcoin (BTC) could inject some buoyancy into altcoins and see AVAX/USD reclaim the $14 area. If this were to happen, it would represent a 100% flip from June lows of $10. For now, buyers must ensure bulls hold the $30k level to prevent further losses.
