Avalanche was ‘undervalued’ before posting 79% weekly gain: analysts
Avalanche (AVAX) appears to be one of the few major cryptocurrencies to avoid the recent cryptocurrency downturn.
Some analysts say this is due to recent partnership announcements and increased trading volume and lock in total value, while others say it's a change in how altcoins are paid.
While Bitcoin (BTC) and Ether (ETH) saw a nose dive of 6% on December 11, AVAX gained 13.6% in the last 24 hours according to CoinGecko.
Ryan McMillin, chief investment officer at Merkle Tree Capital, told Cointelegraph that much of the excitement surrounding AVAX can be attributed to traditional finance giants JPMorgan and Citi partnering with the Avalanche Foundation for their Real World Asset (RWA) token initiative.
“Most recently, AVAX's strength appears to be tied to an increase in daily trading volume from around $200,000 to $4.5 million over the past two days, with daily active addresses trending upward,” Millin added.
As of September 12, Avalanche Network's total value locked (TVL) increased 82% from $490 million to $894 million, while AVAX token trading increased 2436% during the same period, according to DefiLlama data.
Henrik Andersen, Chief Investment Officer of Apollo Crypto, told Cointelegraph that broader market levels had already pushed AVAX down.
RELATED: Tech firm Republic uses Avalanche for profit-sharing investment notes
“A few weeks ago, the Avalanche had more TVL than, for example, Solana, which had a quarter of the market,” Anderson said. “TVL is still high but the market cap is now half of Solana.”
“We believe that by 2024 we will enter a market where some altcoins will outperform Bitcoin,” he added. He names Immutable (IMX) and Synethix (SNX) as tokens that have outperformed Bitcoin since 2022.
In a Dec. 11 crypto fund flow report, CoinShares head of research James Butterfill said that while major price drops like Bitcoin and Ether suffered this week, Solana (SOL) and Avalanche gained $3 million and $2 million, respectively, in the altcoin sector “firmly.” Favorites”.
Magazine: This is your mind on crypto – drug addiction grows among crypto traders
