The market intelligence platform, IntoTheBlock, recently highlighted Avalanche (AVAX) as a key network to keep an eye on in the crypto world.
Avalanche’s Recent Surge in Activity
In a recent post on X, IntoTheBlock delved into the recent trends of two vital network activity metrics for Avalanche: Active Addresses and New Addresses.
The first metric, Active Addresses, gauges the number of AVAX addresses engaging in any transaction on a daily basis. This metric counts both senders and receivers, offering a glimpse into the level of traffic the network experiences.
Essentially, the total unique number of active addresses indicates how many users are visiting the blockchain. It’s like a measure of the network’s daily footfall.
The second metric, New Addresses, records the daily number of wallets becoming active for the first time. It’s a marker of how many individuals are making their debut transactions on the network.
New addresses emerge when fresh investors step into the scene or when former participants, who may have sold off earlier, decide to return. They also appear when current users create additional wallets for privacy or to reorganize their holdings.
Typically, all these activities are happening concurrently. When the New Addresses metric sees a spike, it can be a sign of net growth in the cryptocurrency’s adoption.
IntoTheBlock shared a chart reflecting the trends of these two metrics for Avalanche over the past year:
Both metrics have shown significant activity recently | Source: IntoTheBlock on X
Examining the chart, it’s evident that both New Addresses and Active Addresses for Avalanche followed a declining trend throughout 2024. However, there was a sudden resurgence of activity in December, indicated by a spike in these metrics.
Currently, these metrics have seen even larger spikes, suggesting a rapid increase in cryptocurrency adoption and heightened investor engagement on the network.
The recent peaks in these indicators not only surpass those seen last year but also exceed the highest points of the 2021 bull market. This uptick "positions the @avax network as a key one to watch if more users enter the crypto market," as IntoTheBlock points out.
Historically, adoption growth has been beneficial for cryptocurrencies, with its impacts usually unfolding over time. On the other hand, high activity often has immediate effects as a flurry of user actions creates conditions ripe for volatility. However, such volatility doesn’t inherently signal a bullish trend.
AVAX Price Update
As of now, Avalanche is trading at about $40, marking an increase of over 8% within a week.
The coin’s price has been climbing lately | Source: AVAXUSDT on TradingView
Image Credits: Featured image by Dall-E, IntoTheBlock.com, chart from TradingView.com.
