Key Takeaways
Avalanche chain has been booming. Not only on the price action front, but also as far as chain activity is concerned. While its price had weak buying momentum at press time, Futures volume seemed to be on the up.
Avalanche (AVAX) could finally be getting the spark it needs for institutional recognition. In fact, the Layer 1 blockchain has recently received much attention for its on-chain activity and price gains.
Stablecoins and Real World Assets (RWA) have been some of the key drivers of this growth.
What’s powering the Avalanche chain right now?
The market capitalization of RWAs on Avalanche jumped by almost 58% in the last few days, according to a post by on X (formerly Twitter). Its value grew to $305.25 million from 39 instruments. Total holders of these assets were also up by a modest percentage, climbing to 7,725.
Source: Avalanche/X
Meanwhile, the total stablecoin transfer volume surged by 6x in the last three months across 12 assets. The market cap of stablecoins, on the other hand, rose by 30% in a month while holders totaled 3.44 million.
Among the institutions actively involved with the chain were Franklin Templeton, Grove Finance, and Centrifuge. The bridging of DeFi and TradFi may be heading to new levels thanks to the aforementioned observations.
A look at AVAX’s price action
On the price charts, AVAX climbed by 9.9% in the last 30 days, with the same in a coolling down phase at press time.
The end of the bear market saw AVAX hike to a high of $27 on 28 July. However, since then, the price has remained subdued below this price level. In fact, it has continued to consolidate between $22 and $26 for the past month.
Still, the altcoin remained bullish in structure as it traded above the SuperTrend indicator. On the c0ntrary though, what seemed to be worrying was the weak momentum reading of – 0.66.
Source: Trading View
With the altcoin’s price now rejecting a break of the support of the SuperTrend, the price could bounce back above $25 – A 5% gain.
In the meantime, a break below could see AVAX drop below $23 on the charts. In fact, the zone has served as the conservative entry point for most traders. Still, the risk of dropping to $21 cannot be overlooked.
Is Futures volume getting overheated?
Finally, a look at the Futures volume revealed a picture of what could be built. The volume, roughly $1.018 billion, has been sharply increasing lately, with the same evidenced by the Bubble Map.
The surge in volume can be seen as further confirmation of the institutional demand and potential whale activity.
Source: CryptoQuant
The funding rates and Open interest were looking good as per CoinGlass data too.
The OI-weighted funding rate’s reading was at 0.0058% – A slight hike from the day’s open value. However, it was still lower than the reading of the last two days – 0.01%.
This indicated that despite the fall in interest, traders have been slowly returning after the RWAs and stablecoins data release.
