Avalanche (AVAX) Network Development Activity Booms, But Usage Declines

Avalanche [AVAX] was one of the few layer 1 networks that hasn’t been able to go toe to toe with popular competitors such as Solana [SOL] and Binance

Avalanche (AVAX) has been lagging behind other Layer 1 networks like Solana (SOL) and Binance (BNB) in terms of development activity. However, data from a year ago shows that the Avalanche ecosystem has been the most active among Layer 1 blockchains.

This indicates a large amount of code being written and pushed to repositories, suggesting a period of innovation and project growth within the Avalanche ecosystem.

Despite the rise in development activity, the Avalanche network has seen a decrease in activity recently. Both the number of daily active addresses and the number of transactions on the network have fallen over the past week. This suggests that fewer people are using the Avalanche network, and there is less overall activity on the blockchain.

To add to this, the total value locked (TVL) and trading volumes on Avalanche’s decentralized exchanges (DEXes) have also dipped. This indicates a potential decrease in the amount of crypto assets locked into Avalanche’s DeFi protocols and a slowdown in trading activity.

At press time, AVAX was trading at $26.84 and its price had grown by 5.01% in the last 24 hours. Despite the spike in price, the overall trend for AVAX was negative.

Since the 24th of May, the price of AVAX declined significantly showcasing lower lows and lower highs, indicative of a bearish trend. If AVAX manages to retest the 27.25 level it may be able to push to the $30.15 level where it could start its journey to the top.

The RSI (Relative Strength Index) for AVAX was 58.81 which indicated that the bullish momentum around AVAX had grown significantly.

Moreover, the CMF(Chaikin Money Flow) for AVAX also decreased which suggested that the money flowing into AVAX fell.

Looking at the social data, it was seen that in the last few days, the social volume around AVAX surged, which suggested that the popularity around the AVAX token had surged.

Moreover, the weighted sentiment around the token had also increased which implied that the number of positive comments around the AVAX token had surged.

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