Can Memecoins Save AVAX from the Current Price
Financial Analyst
- Stablecoin activity on the network increased sharply.
- The price of AVAX increased, but interest in Avalanche NFTs decreased.
Avalanche [AVAX] has been trying to mark its territory in the competitive altcoin space for quite some time. However, it failed to gain as much traction as its counterparts.
Increase in stablecoin volume
Recent data suggests that the tide is turning in favor of Avalanche. Avalanche recorded the highest stablecoin activity since 2023. This indicated that there is more activity and liquidity on the network.
One of the reasons for the increase in stablecoin volume would be the growing number of memecoins gaining popularity on the Avalanche network.
Unlike other networks like Solana, the memecoins in the network are supported by institutions like the Avalanche Foundation.
The Memecoin Rush program recently launched by the Avalanche Foundation aims to attract more users to the Avalanche network through memecoins and also help add more liquidity to their ecosystems.
If the Avalanche Foundation’s bet pays off, the network could see further growth in both its ecosystem and price.
NFT interest is declining
However, other aspects of the Avalanche ecosystem have seen a decline in interest in the NFT sector. Blue-chip Avalanche NFT collections like LoFi Leopards and Chad Doge have seen a drop in volume.
Additionally, the amount of new NFTs minted on the Avalanche network had also decreased.
Source: AVAXNFTStats
Despite the decline in NFT interest, the price of AVAX performed relatively well. At press time, AVAX was trading at $56.09 and its price was up 1.29% in the last 24 hours.
The price of AVAX has been rising for quite some time. After March 12, the price of AVAX increased by 14% while making several higher highs and higher lows, establishing an uptrend.
After testing the resistance level at $65.39, the price of AVAX fell back to $50.84. Despite the dramatic correction, the price decline was not significant enough for a trend reversal. If AVAX price retests the $57.04 level, it could rise again in the future.
Realistic or not, here is the AVAX market cap in BTC terms
AVAX’s OBV (On Balance Volume) also grew along with the price, implying increased buying pressure for AVAX.
However, AVAX’s CMF (Chaikin Money Flow) has fallen, which could mean that AVAX’s rise will not be entirely smooth.
