- Avalanche’s network activity declined sharply as well.
- AVAX was down by over 3% but a few indicators looked bullish.
Bear markets, where volatility remains relatively low, are generally a good opening for blockchains to focus on development activity. High development in bear markets can show its effect during the next bull run. Avalanche [AVAX] has rightly used this opportunity, which was evident from the latest data. However, will development activity alone be enough for AVAX to hold its ground while its price continues to drop?
Read Avalanche’s [AVAX] Price Prediction 2023-24
Avalanche boasts its development activity
Luigi, head of DeFi at Ava Labs, recently posted a tweet highlighting the number of active developers different blockchains had during the bear market. As per the tweet, Avalanche’s number of developers has remained relatively stable over the last few months.
Interesting to see @avax as one of the most resilient ecosystems for Active Developers through the bear market.
While most ecosystems were down, Avalanche has seen a slight rise over the last few months.
— Luigi D’Onorio DeMeo🔺 (@luigidemeo) September 9, 2023
This was not the case with other prominent blockchains like Polygon [MATIC] and Solana [SOL], as they witnessed a decline in their numbers. Not only did AVAX have more developers, but their efforts were also reflected on the chart as the blockchain’s development activity and development activity contributors count increased substantially over the past three months, which was encouraging to see.
Network activity is dropping
Though the blockchain’s development activity remained high, its network activity dwindled over the bear market. This was evident from a look at Artemis’ data, which pointed out a steep drop in AVAX’s daily active addresses along with daily transactions.
A similar declining trend was also noted in terms of AVAX’s captured value. Over the last three months, both AVAX’s fees and revenue dropped. The same remained true for the blockchain’s TVL, as it plummeted sharply during the same period.
Like the blockchain’s network activity, AVAX’s price also dipped, which can be attributed to the current bearish market condition. According to CoinMarketCap, AVAX was down by more than 3.6% in the last 24 hours. At the time of writing, it was trading at $9.52 with a market capitalization of over $3.3 billion, making it the 21st largest crypto.
A look at Avalanche’s daily chart revealed quite a few indicators that suggested that the token could soon paint its chart green. For instance, the Relative Strength Index (RSI) was about to enter the oversold zone. This can increase buying pressure and, in turn, lift AVAX’s price.
How much are 1,10,100 AVAXs worth today
The Chaikin Money Flow (CMF) also registered an uptick, which looked bullish. In fact, Coinglass’ data pointed out that AVAX’s open interest dropped sharply along with its price, which generally leads to a trend reversal.
Nonetheless, the Money Flow Index (MFI) continued to remain bearish.