Over the past few weeks, Avalanche [AVAX] has seen a major decrease in price after reaching all-time highs in March.
Increasing volume
Traders, however, are feeling upbeat because to recent activity on decentralized exchanges (DEXs) like Mux Protocol. Reviving interest in trading the altcoin appears to be a positive indication that a market turnaround may be approaching. One of the primary causes of this optimism has been the rising trade volume for tokens like Avalanche's AVAX.
AVAX even succeeded in breaking into the top 10 by volume on the strength of the same.
Furthermore, falling funding rates for AVAX Futures contracts point to a possible shift in investor sentiment—away from short-term wagers and toward holding in altcoins for extended periods of time.
Future AVAX prices will be significantly impacted by the condition of the Avalanche ecosystem. Furthermore, there was a sharp decline in the quantity of daily transactions on the network.
One of the biggest obstacles to AVAX's potential expansion is a dearth of activity on the network.
Although Avalanche's DeFi division has not been doing well, there has been a noticeable increase in demand in Avalanche NFTs. During this time, NFT collections like Dreamheads and Lofi Leopards also attracted a lot of interest.
April 2024, Cryptoniteuae