13% Surge Sends AVAX Rumbling – Is This The Start Of Something Big?

Christian Encila

1 year ago

3 mins read

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AVAX, the ninth-largest cryptocurrency by market capitalization, has defied recent selling pressure, experiencing a notable 13% surge in the last 24 hours. This rally propelled the Avalanche Network token to a 10-day high of $36, sparking optimism among investors for a more sustained upward trend.

Analysts attribute this positive momentum to two key factors: the increased activity on a decentralized social app called The Arena and the introduction of a groundbreaking scaling solution by Ava Labs.

Solid Run: AVAX TVL Soars 27%

The Arena, a SocialFi platform built on the Avalanche blockchain, witnessed a remarkable 27% surge in its total value locked (TVL) within just 24 hours. As the fourth-largest SocialFi decentralized application (dApp) with over $798,000 in deposits.

Source: Defillama

The Arena aims to capitalize on the growing popularity of similar platforms like Friend.tech. Despite facing a temporary setback due to an exploit shortly after its launch, the recent rebound is viewed by proponents as a potential turning point. Given that AVAX is the utility token for The Arena, its success could directly contribute to the increased 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 aims to transform transaction processing on the Avalanche network, promising an impressive capacity of 100,000 transactions per second (TPS) without compromising security or decentralization.

1/ Introducing Vryx: Fortifying Decoupled State Machine Replication

(How the #Avalanche HyperSDK Will Reach HyperTPS)https://t.co/eY3uWcyTPr

— Patrick O’Grady 🔺 (@_patrickogrady) January 26, 2024

Avalanche currently trading at $35.02 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 latest price surge of AVAX got the derivatives market excited as well. 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 developments, caution prevails. 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. Additionally, the success of both The Arena and Vryx remains uncertain, necessitating close monitoring of their development.

Avalanche’s recent surge is viewed positively, offering promising indicators for the future of AVAX. Increased adoption of The Arena and the successful deployment of Vryx could drive further demand for the token, potentially sustaining an upward trajectory. However, investors are reminded to conduct their own research and exercise prudence before engaging in any cryptocurrency investment, considering the inherent risks associated with the market.

Featured image from Shutterstock, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.