Avalanche has become one of the most famous blockchains in the last few weeks, especially when it comes to DeFi. But there should be more. If you consider that most investors are not yet familiar with DeFi, or at least have little information, they stay on the spot market.
And when you look at the current terms of Avalanche, these investors may not feel as good as they used to be.
What about avalanche?
The month of October was cheap for most of the coins in the market, with Bitcoin and Ethereum driving the surge. However, Avalanche is one of the few altcoins that did not participate in the rally. Right now, AVAX is the only top 15 coin that has seen its price drop. At press time, the altcoin was trading at $ 61.18.
Since early October, AVAX is down 8.22% from $ 67. The price indicators also showed no explicit signs of recovery.
The Relative Strength Index has not moved from neutral in 4 days. And the MACD is continuously bearish.
In addition, the trade was also hit. Volumes are currently at a two-month low of $ 812 million, despite AAVE’s begin online on October 5th.
This is actually due to the developers of the network. Their contribution has decreased since the end of September, which is reflected in the level of development activities, which has fallen to a 2-month low.
As a result, investors in the spot and derivatives markets have slowed. Buy, sell, liquidate, everything has decreased significantly.
So no hopes for AVAX?
Indeed there is. On the DeFi front, the network has worked almost always, even better. In less than 5 days, the network’s Total Value Locked (TVL) rose $ 1 billion, 50% of which came just yesterday.
A big contributor to this increase was 4 logs, which have grown remarkably over the past week. Anyswap, a cross-chain swap protocol, has grown by over 228%. The Abracadabra credit record was up 91%.
Additionally, Wonderland – the first DeFi reserve currency protocol – is up 97%. And finally, a return log called Zabu Finance contributed with a 122% growth.
So while the NFT and DeFi hype of the last few weeks gave AVAX a big boost, the current situation on the spot and futures market is a reality check for investors. DYOR and invest carefully.