Emily Walker
IntoTheBlock, a market intelligence platform, highlights Avalanche (AVAX) as a significant network to observe in the cryptocurrency landscape.
Increased Activity on Avalanche
In a recent update shared on X, the platform examined two key metrics regarding Avalanche’s network activity: Active Addresses and New Addresses.
The first metric, Active Addresses, reflects the total count of AVAX addresses engaging in transaction activities each day, encompassing both senders and recipients.
This metric serves as an indicator of unique users interacting with the blockchain, providing insights into the traffic levels within the cryptocurrency network.
The second metric, New Addresses, counts daily the wallets that are being activated for the first time, indicating how many users are conducting their initial transactions on the blockchain.
New addresses come into existence whenever new investors join the platform or when previous investors return after selling. They can also arise when existing users create new wallets for privacy or consolidation purposes.
Overall, the simultaneous rise in New Addresses suggests a growing adoption of the cryptocurrency, with spikes in this metric signaling increasing user activity.
The analytics firm shared a chart illustrating the trends of these two indicators for Avalanche over the past year:
According to the graph, both New Addresses and Active Addresses for Avalanche experienced a downward trend throughout 2024, followed by a significant uptick in activity during December.
This month, both metrics have soared further, suggesting an acceleration in cryptocurrency adoption and growing investor engagement on the network.
Notably, the recent peaks in these indicators surpass not only last year’s levels but also the heights reached during the 2021 bull market. “This positions the @avax network as a key one to watch, should more users enter the crypto market,” IntoTheBlock states.
While adoption is beneficial for cryptocurrencies in the long run, high activity levels can produce immediate reflections in the market, leading to volatility. However, such volatility does not necessarily indicate a bullish trend.
AVAX Price Update
As of now, Avalanche is trading around $40, reflecting an increase of over 8% in the past week.