Avalanche [AVAX] usage jumps 221% – 3 factors will decide if $25 holds

• AVAX price dropped by 1.13% to $ 23.66, despite strong chain activity and growing investors’ participation.
• Liquidity drains persisted when TVL dropped by $ 50 million and the volume of dex trading dropped from $ 216.5 million to $ 130.3 million.

Avalanche [AVAX] It recorded a slight price drop by 1.13%, up to $ 23.66 on the last day. The analysis shows that it is likely to overcome the sales pressure it faces and records remarkable price gains.

In the middle of this bull sentiment, however, there are still active sellers on the market because the outflow of liquidity is growing gradually.

That’s how it could play.

AVAX ENVIZE RECORDS Main activity

Over the past 24 hours, there has been a massive increase in the avalanche activity. For the knowledge of NansenActive addresses jumped by 221%, while the number of transactions increased by 109%.

This means that more investors were on board the chain and the remarkable number of these investors has completed the transaction.

Interestingly, it also means that Avax has been purchased and used to facilitate these transactions.

When Ambrpto carried out further research, he found that 89.94% of these transactions were associated with Opensea, an unstoppable token market (NFT).

In addition, Ambcrypto found that 89.94% of these transactions were tied to Opensea, the NFT market.

This is in line with a wider trend-nft application has appeared as the second best performance in the last 30 days, with a growth of 78.1%.

This means that further growth in NFT applications could be helpful in the near future to increase the price of Avax.

The positive effect can be seen in the generation of Avalanche fees, which in May 11 moved from a low $ 19,500 to $ 24,300 at printing time.

This generation of fees also confirms that the use of blockchain is high. Although it is important, market activity is also essential for the rise in assets.

Ambcrypto found that this was not the case, because the activities on the stock exchanges and liquidity drain were unfavorable to AVAX.

Drainage of liquidity and low business activity persists

While the activity on the chain has increased over the last 24 hours, Avax is still suffering from liquidity drainage.

According to the defillama, the total value of the locked (TVL) across the Avalanche protocols has gradually decreased.

TVL dropped by $ 3.26%, from $ 1.519 billion to $ 1.469 billion, with Avax worth $ 50 million.

At the same time, the volume of dex trading reduced from $ 216.5 million to $ 130.3 million, showing declining demand on decentralized exchanges.

In order for Avax to maintain the momentum, demand must not only return to chain-only across trading and liquidity channels.