According to IntoTheBlock, it’s worth keeping an eye on Avalanche as a significant player within the crypto market.
Avalanche Has Been Witnessing Consistently High Activity Recently
In their latest update on platform X, IntoTheBlock delves into the trends of two network activity-focused metrics that have been significant for Avalanche lately. These key factors under examination are the number of Active Users and the influx of New Users.
In simpler terms, the first measurement, referred to as Active Addresses, calculates the daily count of Avalanche (AVAX) addresses engaged in any transactional actions within the network. This tally encompasses both senders and recipients involved in those transactions.
As a crypto investor, I view the total distinct number of active wallets as a reflection of individual users engaging with the blockchain. Essentially, this metric gives me an idea of the amount of activity, or traffic, my chosen cryptocurrency is experiencing.
This alternative metric, referred to as “New Addresses,” monitors the number of new wallets that become active each day. Essentially, it provides insights into the number of individuals who are initiating their first transactions within the blockchain network for the first time.
New addresses are produced under several circumstances within the network. These include situations where new investors decide to join, as well as instances where previous investors (who may have previously sold their holdings) return. Furthermore, fresh addresses come into existence when existing users establish new digital wallets for privacy reasons or for purposes of consolidation.
Generally speaking, all these events happen simultaneously. This suggests that there might be an increase in the use of cryptocurrency when the number of new addresses experiences a surge, as it could imply some adoption is taking place.
Currently, I’d like to present a graph provided by the analytics company, which illustrates the development of two key measures pertaining to Avalanche during the last twelve months.
According to the graph, both the number of new Avalanche addresses and active addresses showed a general decline throughout 2024, but there was a significant surge in activity in December, as indicated by a noticeable increase in these metrics.
This month, we’ve noticed significantly greater increases across various metrics, which could be an indication that the usage of cryptocurrency is picking up speed and more investors are actively participating in the network.
The current peaks in this indicator aren’t just surpassing last year’s levels, but they also outdo the highest point of the 2021 bull market. This makes the Avalanche network a noteworthy one to keep an eye on, as it could attract more crypto users, according to IntoTheBlock.
Historically, adopting cryptocurrencies has shown to have long-term benefits, although the results might not be immediately noticeable. Conversely, a high level of activity tends to manifest itself swiftly, as numerous users engaging in transactions creates an ideal setting for rapid price fluctuations. However, these fluctuations aren’t always indicative of a bullish market.
AVAX Price
At the time of writing, Avalanche is trading around $40, up more than 8% over the last seven days.
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2025-01-17 14:41