• Avalanche [AVAX] registered a significant drop in its weekly trading activity throughout the month of February.
• Most of the top games on the ecosystem registered a drop in their unique active wallets in the last 30 days, data from DappRadar showed.
• The technical indicators, though, sided with a bearish idea for the short term.
Drop in Trading Activity
Avalanche [AVAX] registered a significant drop in its weekly trading activity throughout the month of February. According to Token Terminal, the weekly average daily active users for the chain fell nearly 28% since January. With the drop in users, the weekly transaction fees paid on the platform halved during the same time period. This was reflected in AVAX’s price which tanked 24% over the previous month while CoinMarketCap reported that it dropped 8% week-over-week.
GameFi Partnerships
GameFi has become one of the fastest-growing sectors in Avalanche’s ecosystem entering into high-profile partnerships lately to boost its appeal and attract more people to play-to-earn games. Recently, it announced a collaboration with Japanese gaming pioneer GREE and also locked a deal with Indian game streaming platform Loco to launch an NFT marketplace. However, metrics presented a different picture; most of Avalanche’s top games registered a drop in their unique active wallets over 30 days according to DappRadar and total NFT trade volume plummeted 80% over previous month as per Santiment.
Bearish Indicators
The result of these deals met mixed reactions from traders but technical indicators sided with bears for short term as Relative Strength Index (RSI) fell throughout February and sat below 50 at press time which suggested that selling pressure was intense while Awesome Oscillator’s (AO) growing red bars implied momentum was favoring sellers instead of buyers which indicated that AVAX is likely to remain under pressure for some time before bouncing back up again.
Price Prediction 2023–24
AVAX might take some time before bouncing back up again – Realistic or not here’s AVAX’s market cap prediction for 2023–24 according to CoinMarketCap – it is expected to reach $17 billion by end of 2023 and further climb up to $20 billion by 2024 which will be great news for holders who can expect profits from holding onto their coins until then if things go according to plan..
Conclusion
All in all Avalanche [AVAX] saw both positives and negatives through out February; although weekly trading activity decreased significantly leading prices down 24%, partnerships with GREE & Loco weren’t able to have much impact either due too drops n unique active wallets & NFT trade volumes plummeting 80%. On top of this bearish technical indicators suggest further declines are likely before any type recovery takes place – however there is hope yet as predictions show that AVAX could reach $17 billion by end 2023 & $20 billion by 2024 if things go according plan giving holders potential profits along way!