AVAX, the native token of Avalanche Blockchain, has been making headlines lately as Avalanche saw a record number of NFT transactions in just the month of April alone. As the world of blockchain continues to expand, the rise in NFT transfers on the Avalanche network poses a burning question – Will this help boost the AVAX price? Let’s explore the possibilities.
AVAX NFT Collections, dApps gaining traction on Avalanche Network
The AVAX token will benefit from the recent surge in NFT transfers on the Avalanche network, which has seen over 2 million NFT transfers in April alone, five times greater than March. This trend is due to the blockchain’s fast and cost-effective transactions and scalable platform, which has made it a preferred choice for NFT creators and collectors.
The surge in Avalanche NFTs can also be attributed to the popularity of blue-chip AVAX NFT collections like Chikn and Doggerinos, which have experienced significant volume spikes in recent months. The growing interest in the Avalanche network has also been reflected in an increase in activity on dApps like Trader Joe, a leading DEX on the network. This has resulted in a significant increase in transaction volume and quantity on the Avalanche network, indicating that AVAX is ready to make further strides in the blockchain and crypto space. Last month, Trader Joe saw a 184% increase in the number of unique active wallets on its platform, reflecting the increasing demand for decentralized trading on the network.
The future seems promising for the AVAX token as more users explore the potential of the platform for NFTs and dApps.
Mediocre Performance of AVAX
However, the performance of the AVAX token has been somewhat lackluster in recent days. In the past week, the price of AVAX experienced a significant decline of 20.65%, according to CoinMarketCap. Nevertheless, it has managed to gain 1.17% in the last 24 hours and is currently trading at $16.97.
The mixed results on the Avalanche network suggest that while interest in NFTs and dApps is growing, there are still challenges to overcome. The decline in active addresses may be due to users exploring other platforms or simply taking a break from trading on the network.
AVAX Network sees Mixed Results despite NFT and dApp Activity
Meanwhile, the Avalanche network has experienced an increase in NFT transfers and increased activity on its dApps, but the overall number of daily active addresses on the network has declined in recent weeks. According to Artemis and reported by AMBCrypto, the number of active addresses on AVAX has dropped from 79,740 to 75,000 in the last 30 days, resulting in a decrease in the number of transactions on the network.
The total market capitalization of AVAX currently stands at $5.5 billion on the daily chart on TradingView.com.
Overall, while the recent surge in NFT transfers on the Avalanche network is a positive development for AVAX, the mixed results suggest that there is still work to be done in attracting and retaining users on the platform.
