Despite the massive hit many altcoins took over the last few weeks due to the market drop driven by lawsuits opened by the SEC against Coinbase and Binance, Avalanche (AVAX) paints a somewhat different story. AVAX was seriously affected by the FUD (Fear, Uncertainty, Doubt) caused by the lawsuits.
Latest on Avalanche (AVAX)
However, according to recent data, the protocol has reached an all-time high in terms of active users. Avalanche managed to see a 382% growth in this metric as the number of active users on the network reached 1 million.
The increase in activity in the protocol is largely due to its growing ecosystem. According to Dapp Radar data, dApps such as Stargate, 1inch Finance, and Trader Joe have observed a substantial increase in unique active addresses in their protocols.
Trader Joe, one of the most popular dApps on the protocol, saw a significant 45.8% increase in terms of transactions.
NFTs Contributed to AVAX
The interest in NFTs also played a role in the increase of activity in Avalanche’s protocols. AVAXNFTSTATS data shows that the volume of various blue chip NFTs significantly increased last month. Popular collections like Roostr and Lofi Leopards recorded volume increases of 260% and 1217%, respectively.
However, AVAX’s price and protocol activity did not align. The reason could be the ongoing lawsuit of SEC against Binance and Coinbase. At the time of writing, AVAX was trading at $11.26. Its price significantly fell last month, and along with the price, AVAX’s volume also dropped significantly during this period.
Yet, development activity on Avalanche has increased, indicating new updates and upgrades will be deployed on the Avalanche protocol. The increase in development activities could attract new users to Avalanche. Additionally, Avalanche’s recent collaborations with Chainlink, aiming to bridge the gap between Web2 and Web3, could also help draw new users and investors to the protocol. Future market movements can guide investors regarding AVAX’s development.
