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Presenting you with insights into what the crypto community is buzzing about each week!
Bitcoin's price remained resilient in the past week. In the meantime, equities have been steady as there’s been no major release of economic data.
This week, macro factors have had little influence. Instead, all the attention is on the Binance fiasco and OpenAI saga, both of which are dominating the headlines. Despite the Fed minutes indicating no rate cuts and the job market showing stronger-than-expected employment data, both the equity and cryptocurrency markets remain resilient.
Source: AVASCAN
The token of the week is AVAX, which has increased by 110% in the past month, a leading performer among top tokens by market capitalization. The surge has been widely attributed to the skyrocketing daily transactions on all chains within the Avalanche ecosystem. However, the price movement of AVAX preceded the reviving on-chain transactions, suggesting there are other reasons leading to AVAX’s outperformance.
Source: DefiLlama
Looking at the capital flow, the one-month new capital inflow into Avalanche falls short of its 100% token surge. A resilient and sustained rally is usually supported by new capital into the ecosystem. In addition, although the distinct daily on-chain wallet numbers have been increasing, they haven’t seen such an abrupt boost as the on-chain transactions. In short, both indicators suggest that Avalanche hasn’t seen a desirable number of new users entering its ecosystem.
Source: Nansen
Diving deeper into the specific chains and applications, Trader Joe on the Avalanche mainnet, along with subnet Dexalot, are the main drivers behind the revitalized on-chain transactions, suggesting that token trading and/or speculations have resulted in this on-chain transaction boost. What’s more, the top traded token on Trader Joes is AVAX. In short, it seems that spiking on-chain transactions are a result of the token surge — instead of the other way around.
In line with the institutions-led rally in the broader cryptocurrency market, the institutional adoption of AVAX has been a real boost to the native token of Avalanche. In particular, J.P.Morgan's Onyx tapped an Avalanche subnet in a proof-of-concept with Apollo Global and the Monetary Authority of Singapore's Project Guardian, which provides tailwind to AVAS as investors anticipate more usage of subnets by institutions.