Post last year’s flash crash, Avalanche embarked on its uptrend journey towards the end of July. In the four-month period between 21 July and 21 November, the alt’s price rose from $9 to a whopping $147.
The broader bearish December trend was the climax to AVAX’s, otherwise fairy-tale, rally. By mid-December, the coin was back trading around the $70 benchmark. Avalanche stepped into the new year with the same bearish outlook. In the period between 2-8 January, Avalanche registered 7 back-to-back red candles.
With the market now showing signs of recovery, even AVAX seems to be in a much better state. At the time of press, the 11th largest alt was seen trading at $97.
What’s keeping Avalanche grounded around the $100 mark?
The state of AVAX’s on-chain activity has slightly been going off-track lately. That’s probably one of the reasons why this coin hasn’t been able to breach past $100 over the past week.
The daily transaction count, for starters, registered two eminent spikes, one on 22 December and the other on 7 January. However, it hasn’t been able to sustain itself over there for long.
Quite parallelly, the daily active address has also registered a congruent trend. After peaking at 134k and 117k on the said dates, they have been currently revolving in the 80k-90k bracket.
Owing to the aforementioned pace of activity, the number of unique contracts deployers on Avalanche’s C-Chain has also started eroding away. Despite spikes noted here and there, they seem to be in a micro-downtrend since mid-December.
The state of the above metrics are, of course, disheartening. However, it wouldn’t be fair to claim that they’ve started deteriorating at this stage.
They have just mildly deviated from their record-making spree. Keeping in mind Avalanche’s strong fundamentals, the said numbers should be able to bounce back within no time. And when that happens, AVAX’s movement on its price chart would become even more swift.