- AVAX prices have been trending higher.
- Avalanche (AVAX) is among the top 10 crypto after rising by more than 60% in the last seven days.
Avalanche defied the recent downturn in the cryptocurrency market by recording an impressive 79% weekly gain, while other major tokens experienced declines. Analysts attribute this outperformance to Avalanche’s perceived undervaluation, coupled with new partnerships formed with JPMorgan and Citi.
Despite Bitcoin (BTC) dropping to $41,558 and Ether (ETH) to $2,226, both experiencing a 6% decline on December 11, AVAX managed to gain 13.6% in the last 24 hours, as reported by CoinGecko.
Ryan Mcmillin, Chief Investment Officer at Merkle Tree Capital, highlighted the excitement around AVAX, suggesting that partnerships with traditional financial giants JPMorgan and Citi for real-world asset (RWA) tokenization initiatives may be a significant factor. Additionally, increased daily transactions from $200,000 to $4.5 million in the last couple of days and a rise in daily active addresses contribute to AVAX’s strength.
Over the past three months, the Avalanche network has experienced substantial growth, with its Total Value Locked (TVL) increasing by 82%, rising from $490 million to $894 million since September 12. Concurrently, AVAX token trading volume surged by an impressive 2436%, according to DefiLlama data.
Henrik Andersson, Chief Investment Officer at Apollo Crypto, asserted that AVAX had been undervalued by broader market standards, citing its higher TVL compared to Solana, with only a quarter of the market cap a few weeks ago. Despite maintaining a higher TVL, AVAX’s market cap is now half that of Solana.
Looking ahead, Andersson predicts a market shift in 2024 where some altcoins will outperform Bitcoin. He specifically highlighted Immutable (IMX) and Synthetix (SNX) as tokens that have outperformed Bitcoin since 2022.
In a December 11 report on crypto fund flows, CoinShares’ Head of Research, James Butterfill, noted that while major cryptocurrencies like Bitcoin and Ether experienced steep declines, Solana and Avalanche attracted inflows of $3 million and $2 million, respectively, remaining “firm favorites” in the altcoin sector.
