Amid the broader market downturn, the price of the native token of the Avalanche blockchain (AVAX) rose 17% in 24 hours to $42.
Against the sharp price rally, the asset entered the top 10 by market capitalization at about $15 billion. The coin’s 24-hour trading volume stood at $3.1 billion.
AVAX outpaced all other altcoins and gained 86% over the week.
Some analysts say the rise is linked to recent project announcements about partnerships, higher trading volumes and the total value locked (TVL) in the ecosystem, while others suggest a shift in altcoin liquidity distribution.
According to Merkle Tree Capital’s chief investment officer Ryan McMillan, the bulk of the AVAX hype may be tied to joint initiatives with financial giants JPMorgan and Citi in the tokenization real-world assets.
«Lately, AVAX’s strength appears tied to a sharp uptick in daily transaction volume, from roughly $200,000 to $4.5 million, while the number of daily active addresses also shows a sustained upward trend,» McMillan added.
According to DeFi Llama, TVL in the blockchain grew by 82% — from $490 million to $935 million — over the last three months, while the trading volume of AVAX tokens over the same period jumped 2436%.
On December 11, Trader Joe’s — the largest decentralized exchange on Avalanche — reached $1.23 million in fees, and revenue stood at $145,000. This was the second-highest platform metric of the year. The JOE token rose more than 41% over the week.
CoinShares’ head of research James Butterfill wrote in a report that AVAX and SOL had shown themselves as “strong favorites” over the past week.
However, YouHodler’s head of markets Ruslan Lienha predicted that the token could soon face a correction, and the current rise is likely temporary.
«We have observed that AVAX correlates with major cryptocurrencies like Bitcoin, but reacts with a lag, so we believe this rally is not an exception, and in the end the asset will follow their momentum», the expert noted.
Separately, Cardano’s ADA token showed less activity but also managed to weather the correction. In the last 24 hours, ADA rose to $0.58, up 5%.
ADA’s market capitalization also rose to $20.4 billion with a trading volume of $1.1 billion.
Earlier, experts explained the dip of Bitcoin below $42,000. Some analysts saw the correction as a chance for altcoins.
On December 6, the meme token DOGE reached a yearly high of $0.102 on its tenth anniversary.