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Large Transactions and Tokenization Drive AVAX Growth Above 82% in Seven Days

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David Pokima

Author

David Pokima

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David is a finance journalist and a contributor to Cryptonews.com with a keen interest in breaking comprehensive, accurate, and reliable blockchain news.

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Last updated:

December 12, 2023

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The cryptocurrency market continues to experience rapid price surges and slight corrections in recent weeks setting the tone for more decentralized finance (DeFi) transactions as the market rebounds.

Among altcoins, Avalanche (AVAX) maintains its bullish momentum becoming the biggest gainer in the last 24 hours amid market corrections after the previous week’s highs.

At press time, AVAX trades for $40.73, a 16.96% increase in the past 24 hours and a 17% increase in its market capitalization standing at $14.9 billion.

In the last seven days, the asset has surged over 82% and 118% during the past 30 days as the wider market extended gains recorded this year wiping out losses in the bear market.

So far, AVAX has notched a year-to-date (YTD) increase of 275% with more positive sentiments seen by bulls after its recent token unlock event which released $213 million worth of assets to the market.

Skyrocketing transactions spark a surge

A significant factor behind the surge of Avalanche in recent weeks is the increase in the number of transactions above figures recorded earlier in the year.

Data from IntoTheBlock shows almost 1000 AVAX transactions that exceeded $100,000 although behind the bull run of 2021. Despite this, it is a huge indicator of an upward movement as it continues to defy any price correction.

The on-chain analysis firm wrote on X (formerly Twitter) “The number of large $AVAX transactions is on the rise, peaking at nearly 1000 transactions bigger than $100k last week. While this is still not close to levels of the last bull market, it is a positive sign for the bulls.”

More on-chain metrics continue to point upward for the layer 1 blockchain as transactions in the last seven days peaked at 1.93 million rising uniformly with total addresses growing to 6.12 million.

DeFi volume and tokenization

As momentum builds on the network, DeFi activity has spiked on Avalanche as Trader Joe, a decentralized exchange on the network, recorded $1.23 million in fees on Dec 11.

JOE, the native token of the platform also posted gains of 9% as the platform revenues host $145,000. Another major factor behind the surge of AVAX is the growing appetite among big financial institutions to test real-world asset tokenization utilizing blockchain technology.

With institutions like JP Morgan and others using Avalanche as their distributed ledger technology (DLT) solution, bulls continue to accumulate the asset in expectation of a tokenization boom in the coming months.

Aside from Avalanche, Solana (SOL) and Cardano (ADA) have grown in the last 24 hours as institutional investors continue acquiring more products. Both assets have recorded an uptick of 3.26% and 5.28% respectively.