Avalanche [AVAX] jumped 13.29% in the last 24 hours of trading, becoming the most prolific gainer among the top 10 cryptocurrencies by market cap.
According to CoinMarketCap, the ninth-largest crypto blasted to a 10-day high of $36, and with it saw a 34% spike in daily trading volumes.
The rebound increased expectations for a more persistent rise in the price of an asset that has been under constant selling pressure since the beginning of the year.
As of this writing, AVAX was down 14% year-to-date (YTD).
Is this the catalyst?
The pump could be linked to a surge in activity on the Avalanche-based decentralized social app, The Arena.
The project’s total value locked (TVL) rose 27% in the last 24 hours, AMBCrypto spotted using DeFiLlama data.
As of this writing, The Arena was the fourth-largest SocialFi dApp, with deposits of over $798,000.
The Arena was trying to tap into the growing popularity of SocialFi apps, the interest around which has surged following the launch of the more popular and evolved project Friend.tech.
The Arena rose to prominence last October, attracting $2.78 million in TVL barely 10 days from its launch. However, the project was exploited shortly after, leading to a dramatic decline in its interest.
The app proponents hoped that the latest rebound could be the start of good things to come. Moreover, as AVAX was the utility token of the project, it would derive significant value from the latter’s ascent.
AVAX sees demand in the Futures market
Shifting focus back to AVAX, the price surge got the derivatives market excited too.
According to AMBCrypto’s analysis of Coinglass’ data, the Open Interest (OI) in AVAX futures jumped by a whopping 20% to $239 million in the last 24 hours.
Additionally, the number of bullish bets taken for AVAX overtook the bearish ones in the last 24 hours. This implied that more traders were optimistic about AVAX’s short-term prospects.
Source : AMBCrypto by Aniket Verma / Jan 29, 2024