- The number of users on the Avalanche network has decreased.
- Stakeholders showed interest in the network as development activity increased.
According to a February 20 tweet from Artemis, the total number of protocols Avalanche (AVAX) Increase network. However, this increase in the number of protocols on the network did not have the desired effect.
the block @the block__ Citing gokustats in his Layer 1 landscape report.
It is interesting to see that ETH and BNB have the largest volume of DeFi protocols, but not necessarily the largest user base.$avax There are many protocols but few users. pic.twitter.com/ZgdHiPaL3W
— Artemis 🏹 (@Artemis__xyz) February 20, 2023
How much they cost Today’s value 1,10,100 AVAX?
Despite the growing number of protocols on the Avalanche Network, the total number of users on the network decreased, which in turn affected the revenue generated. According to Token Terminal, it has been observed that the revenue collected by Avalanche has decreased by 18.2% in the last three months.
Another indicator of declining interest in Avalanche was declining interest in Avalanche NFTs. According to data provided by AVAX NFT STATS, several top-tier NFTs have seen a decline in volume over the past month. A drop in NFT interest could also have a negative impact on the overall Avalanche ecosystem.
However, despite these developments, the number of stakeholders in the Avalanche Network grew. According to Staking Rewards data, the number of interested parties in the Avalanche Network has increased by 30.65% in the last 30 days. At press time, there were 70,902 interested parties in the Avalanche Network.
No bears in sight for AVAX
Despite the support from stakeholders, the total volume of AVAX tokens has decreased. According to data from Sentiment, the volume of AVAX tokens fell from 570 million to 433 million in a matter of days.
These negative factors may be offset by increased avalanche development activity. Which has increased in recent weeks. High growth activity suggested that there could be potential upgrades to its network, which could attract new users.
Despite declining users and volume, avalanche The dominance of the token’s market cap grew along with its price. This implies that the AVAX token still outperforms other cryptocurrencies despite the low number of users on its protocol.
realistic or not, here it is AVAX market capitalization in terms of BTC
However, as the price of AVAX increased, so did its volatility. According to Messari data, Avalanche volatility rose 19.2% last week. If the volatility of the AVAX token increases, it will lose its appeal to risk-averse investors.