AVAX Rumbles with a 13% Surge

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AVAX, which is the ninth largest cryptocurrency by market cap, has resisted recent selling pressure and experienced a notable 13% increase in the last 24-hours. This rally propelled Avalanche Network to a 10-day-high of $36, sparking investors’ optimism for a sustained upward trend.

Analysts attribute positive momentum in the market to two key factors. The increased activity of The Arena, a social app decentralized and Ava Labs’ introduction of a revolutionary scaling solution.

AVAX TVL soars 27%

The Arena, built on the Avalanche Blockchain, has seen a remarkable 27% rise in its Total Value Locked (TVL). This happened within 24 hours. The Arena is the fourth largest SocialFi decentralized app (dApp) and has over $798,000 of deposits.

Source: Defillama

The Arena is aiming to capitalize on similar platforms like Friend.tech. Proponents see the recent rebound as a possible turning point, despite a temporary setback caused by an exploit shortly after launch. AVAX is The Arena’s utility token, so its success could directly impact the value of the crypto.

One of the catalysts behind Avalanche’s bullish momentum, however, stems from Ava Labs’ ambitious new project: Vryx. This innovative scaling solution promises to transform the transaction processing on Avalanche’s network. It offers an impressive capacity 100,000 transactions per second without compromising security and decentralization.

Avalanche trading at $35.02 per day on the daily chart TradingView.com

Addressing a significant challenge in blockchain technology—scalability—Vryx’s successful implementation has the potential to attract a wave of new users to the Avalanche ecosystem.

AVAX Surge: Excitement Amid Volatility

In a related development the derivatives market was also excited by the latest price surge for AVAX. According to NewsBTC’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.

Source: Coinglass

Despite the promising development, caution is still a must. The cryptocurrency market is notorious for its volatility, and the broader market sentiment plays a crucial role in AVAX’s performance. Ongoing market turmoil could temper AVAX’s momentum. The success of The Arena and Vryx is also uncertain, so it’s important to keep a close eye on their development.

Avalanche’s recent surge is viewed positively, offering promising indicators for the future of AVAX. The Arena’s adoption and Vryx’s successful deployment could increase demand for AVAX, possibly sustaining its upward trajectory. Investors are advised to do their own research before investing in cryptocurrency, and to exercise caution, given the inherent risks of the market.

Chart from TradingView, image from Shutterstock

Disclaimer: This article is only for educational purposes. NewsBTC has no opinion on whether you should buy, hold or sell any investment. Investing carries risk and this article does not reflect that. It is advised that you conduct your own due diligence before making any investments. You use the information on this website at your own discretion and risk.

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