AVAX rides Crypto Assets avalanche to success: Market Cap soars 344%

Avalanche (AVAX), a Blockchain platform known for its scalability and infrastructure, made significant progress in Q4 2023 (Q4). According to a report by M, AVAX emerged as one of the best-performing tokens, driving significant progress on the protocol's key metrics. The report shows that the Market Cap of AVAX has grown significantly, by 344% quarter-on-quarter and 326% year-on-year, reaching $14.4 billion at the end of the year. This massive increase AVAX Market Cap rise from 20th to 9th among all Token, rise 11 places (currently ranked 10th, behind Cardano (ADA)).

One of the drivers of Avalanche's significant revenue growth has been the surge in the number of inscriptions, especially Avascriptions (ACS-20 Token).

These on-chain call data transactions have grown substantially, resulting in a significant increase in revenue. From November to December, Avalanche's revenue skyrocketed, up 2,874% in dollar terms, from $1.9 million to $56.5 million.

The surge in revenue was accompanied by a significant increase in daily transactions, up 450% QoQ to 1.5 million. The advent of Avascriptions has also driven most of these transactions.

Avalanche's C-Chain experienced a record-breaking 6.3 million transactions, of which nearly 6.1 million were inscribed. This marks the highest single-day trading volume ever recorded by Avalanche.

While C-Chain's daily active Address decreased by 50% QoQ, this was mainly due to reduced activity at LayerZero, a bridge between different Blockchains. However, the report highlights that Avalanche has seen a significant increase in the number of active validators, up 20% from 1,374 to 1,651 validators.

M said the increase in the number of validators, combined with an 11% quarter-on-quarter increase in AVAX shares, indicates that long-term demand for AVAX is promising in the coming year.

Avalanche's gross value locked (TVL) in U.S. dollars increased significantly by 78% sequentially to reach $1.03 billion by the end of Q4 2023. This makes Avalanche the seventh USD-denominated TVL chain. HOWEVER, AVAX-DENOMINATED TVL DECREASED 71% QOQ, MAINLY DUE TO AN INCREASE IN USD-DENOMINATED TVL DRIVEN BY AVAX PRICE APPRECIATION.

The report also reveals the performance of various protocols on Avalanche. TVL's largest protocol, AAVE, saw a 60% QoQ increase, while Benqi and Trader Joe saw QoQ increases of 205% and 131%, respectively. Together, these three protocols account for 79% of Avalanche TVL, demonstrating their dominance in the ecosystem.

Smaller protocols such as Pangolin and GMX have also shown impressive growth, while Balancer has attracted a large amount of TVL on Avalanche with the help of Benqi's sAVAX liquidity pool. In addition, the average daily trading volume of DEXs surged in Q4, increasing by 245% quarter-on-quarter.

Analysis of the 1-day chart shows that Avalanche's Token trading pair AVAX/USD experienced significant growth in the fourth quarter, moving away from long-term sideways price action.

However, after a significant uptrend on December 24 that pushed the Token to $50 (the highest level in 20 months), AVAX experienced a significant pullback, plummeting to the $27 price level.

Crypto Assets have rebounded due to the rally in Bitcoin (BTC) and the general bullish sentiment in the market. THE PRICE OF AVAX HAS INCREASED BY 13% IN THE LAST 14 DAYS AND HAS NOW REGAINED THE $40 AREA.

(Source: Ronaldo Marquez)