Will Avalanche's NFTs help AVAX go up? Refer to these metrics for an answer

Will Avalanche’s NFTs help AVAX go up? Refer to these metrics for an answer

24 April 2023

in NFT

Reading Time: 6 mins read

The number of NFT trades on the Avalanche network surged and the interest in dApps increased.
On the other hand, daily activity on the network declined.

The NFT market has primarily been dominated by Solana, Polygon, and Ethereum, attracting considerable user attention. Nevertheless, according to current data, Avalanche may be poised to close the gap and compete with these protocols soon.

Read Avalanche’s Price Prediction 2023-2024

According to recent data, it was observed that Avalanche NFT transfers surged. During April, the Avalanche network experienced over 2 million NFT transfers, a figure that was five times greater than the previous month of March.

Source: Dune Analytics

The increased interest in Avalanche NFTs could be attributed to Blue chip AVAX NFT collections. Over the past few months, popular NFT collections like Chikn and Doggerinos have witnessed a significant surge in volume, as per the data from AVAX NFT STATS.

The dApps operating on the Avalanche network experienced a similar level of interest. Trader Joe, one of the leading DEXs on the Avalanche network, witnessed a surge of 183.8% in the count of unique active wallets on its network in the past month.

As a result, the volume and quantity of transactions on the network also increased during this period.

Source: Dapp Radar

Still, a long way to go for Avalanche

However, despite interest in NFTs and high dApp activity, the overall number of daily active addresses on the network declined.

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Over the past month, the number of active addresses on the network fell from 79,740 to 75,000, according to Artemis’ data. As a result, the number of transactions being made on the Avalanche network also went down.

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Source: Artemis

Moreover, there has been a decline in the level of interest in staking on the Avalanche network.

According to Staking Rewards data, the count of stakers on the network decreased by 0.82% in the preceding week. At the time of reporting, the number of stakers on the Avalanche network stood at 84,419.

Source: Staking Rewards

The state of the AVAX token wasn’t too well either. Over the past few weeks, the price of AVAX has experienced a substantial decline. Along with its volume, which decreased from 598 million to 149.23 million.

Realistic or not, here’s AVAX’s market cap in BTC terms

Despite this, the development activity on the Avalanche network’s GitHub has continued to increase. The recent upgrades and updates on the network resulting from the development activity could have a positive impact on the AVAX token in the long run.