The Market Cap of Avalanche (AVAX) Explodes by 344% in Q4 2023

12:33 am
February 17, 2024
Featured image for “The Market Cap of Avalanche (AVAX) Explodes by 344% in Q4 2023”

The fourth quarter (Q4) of 2023 brought about significant growth for Avalanche (AVAX), with the blockchain platform making substantial strides. According to a report from Messari, AVAX emerged as one of the top performers in the crypto space, driving the protocol to achieve remarkable gains in various key metrics.

Record-Breaking Milestones For Avalanche

The report reveals that AVAX experienced a substantial increase in its market cap, surging by 344% quarter-over-quarter (QoQ) and 326% year-over-year (YoY), reaching $14.4 billion by the end of the year. This remarkable growth boosted AVAX’s market cap rank among all tokens from 20 to 9, marking an impressive climb of 11 spots (currently standing 10th, behind Cardano (ADA).

The surge in market cap was primarily driven by the increase in inscriptions, particularly Avascriptions (ACS-20 tokens). The on-chain call data transactions experienced a significant boost, leading to a substantial increase in revenue. Avalanche witnessed a surge in revenue, with a 2,874% increase measured in USD, from $1.9 million to $56.5 million from November to December.

The significant increase in revenue was accompanied by a 450% QoQ surge in daily transactions, with the majority being driven by the emergence of Avascriptions. Avalanche’s C-Chain experienced a record-breaking 6.3 million transactions, with nearly 6.1 million being inscriptions, marking the highest number of transactions ever recorded in a single day for Avalanche.

While C-Chain saw a 50% QoQ decrease in daily active addresses, primarily due to decreased activity on LayerZero, the report highlighted a significant increase in active validators, growing 20% QoQ from 1,374 to 1,651 validators. According to Messari, this growth in validators, coupled with an 11% QoQ increase in AVAX stakes, indicates a promising long-term appetite for AVAX in the coming year.

Avalanche’s TVL Surges 78%

Avalanche’s Total Value Locked (TVL) denominated in USD experienced a substantial 78% QoQ increase, reaching $1.03 billion by the end of Q4 2023, positioning Avalanche as the 7th chain by TVL, denominated in USD. However, TVL-denominated in AVAX decreased by 71% QoQ, primarily due to AVAX price appreciation driving the increase in USD-denominated TVL.

The report also highlighted the performance of various protocols on Avalanche. AAVE, the largest protocol by TVL, witnessed a 60% QoQ growth, while Benqi and Trader Joe demonstrated strong gains of 205% and 131% QoQ, respectively. Together, these three protocols accounted for 79% of Avalanche’s TVL, showcasing their dominance in the ecosystem. Smaller-sized protocols, such as Pangolin and GMX, also showcased impressive growth, while Balancer, aided by Benqi’s sAVAX liquidity pool, attracted significant TVL on Avalanche. Q4 further witnessed a surge in average daily DEX volumes, rising by 245% QoQ.

Analysis of the 1-day chart reveals that Avalanche’s token trading pair AVAX/USD experienced significant growth during Q4, breaking free from a prolonged period of sideways price action. However, following a notable uptrend that propelled the token to reach $50, its highest level in 20 months, on December 24, AVAX underwent a sharp correction, plunging to the $27 price level. The cryptocurrency has rebounded in response to Bitcoin’s (BTC) rally and the prevailing bullish sentiment in the market. Over the past fourteen days, AVAX has witnessed a 13% price increase, currently reclaiming the $40 zone.

AVAX’s uptrend over the past fourteen days on the daily chart. Source: TradingView.com

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

FAQs

What contributed to Avalanche’s significant growth in Q4 2023?

Avalanche experienced significant growth in Q4 2023, primarily driven by a surge in market cap, revenue, and active validators. The emergence of Avascriptions and a surge in daily transactions were key contributing factors.

How did Avalanche perform compared to other protocols in terms of TVL?

Avalanche’s Total Value Locked (TVL) denominated in USD surged by 78% QoQ, positioning it as the 7th chain by TVL. The report highlighted the dominance of protocols like AAVE, Benqi, and Trader Joe, which accounted for 79% of Avalanche’s TVL.

What were the key developments in Avalanche’s token price during Q4 2023?

Avalanche’s token trading pair AVAX/USD experienced significant growth during Q4, breaking free from a prolonged period of sideways price action. The cryptocurrency reached its highest level in 20 months but underwent a sharp correction before rebounding amidst Bitcoin’s rally and prevailing bullish sentiment in the market.


Share:

More in this category ...

7:34 pm April 17, 2024

Crypto Exchanges Bitcoin Supply Can Only Last For 9 Months, ByBit Report

Featured image for “Crypto Exchanges Bitcoin Supply Can Only Last For 9 Months, ByBit Report”
7:27 pm April 17, 2024

SUI spikes 11% as BTC, ETH slide: Here’s why Sui value is surging?

Featured image for “SUI spikes 11% as BTC, ETH slide: Here’s why Sui value is surging?”
4:46 pm April 17, 2024

Using dig +hint to know DNS solution from begin to end

Featured image for “Using dig +hint to know DNS solution from begin to end”
12:15 pm April 17, 2024

Puffer Finance raises $18 million in new investment spherical

Featured image for “Puffer Finance raises $18 million in new investment spherical”
7:37 am April 17, 2024

XRP Price Recovery Could Soon Fade, These Are Key Levels To Watch

Featured image for “XRP Price Recovery Could Soon Fade, These Are Key Levels To Watch”
5:06 am April 17, 2024

IBM and TechD companion to safely percentage knowledge and gear insights with gen AI

Featured image for “IBM and TechD companion to safely percentage knowledge and gear insights with gen AI”
5:03 am April 17, 2024

WOO unveils innovation hub thinking about Bitcoin’s ecosystem

Featured image for “WOO unveils innovation hub thinking about Bitcoin’s ecosystem”
9:51 pm April 16, 2024

OKX launches public mainnet for its ZK-powered L2 community “X Layer”

Featured image for “OKX launches public mainnet for its ZK-powered L2 community “X Layer””
7:40 pm April 16, 2024

Arkham Releases Top 5 Crypto Rich List

Featured image for “Arkham Releases Top 5 Crypto Rich List”
5:27 pm April 16, 2024

Ankr and Brevis coChain associate to reinforce web3 networks with ZK

Featured image for “Ankr and Brevis coChain associate to reinforce web3 networks with ZK”
5:48 am April 16, 2024

4 techniques generative Machine Intelligence addresses production demanding situations

Featured image for “4 techniques generative Machine Intelligence addresses production demanding situations”
12:14 am April 16, 2024

Germany’s biggest federal state financial institution companions with Bitpanda

Featured image for “Germany’s biggest federal state financial institution companions with Bitpanda”
7:46 pm April 15, 2024

Dogecoin Whales Send 800 Million DOGE To Exchanges, Dump Incoming?

Featured image for “Dogecoin Whales Send 800 Million DOGE To Exchanges, Dump Incoming?”
6:09 pm April 15, 2024

Data virtualization unifies information for seamless Machine Intelligence and analytics

Featured image for “Data virtualization unifies information for seamless Machine Intelligence and analytics”
5:02 pm April 15, 2024

NEO rebounds previous $22.8 as this meme coin presale surges previous $4.8 million

Featured image for “NEO rebounds previous $22.8 as this meme coin presale surges previous $4.8 million”
7:49 am April 15, 2024

SOL Price Dump and Pump, Can Solana Overcome Selling Pressure?

Featured image for “SOL Price Dump and Pump, Can Solana Overcome Selling Pressure?”
7:49 pm April 14, 2024

Bitcoin Bonanza Before The Halving? Analyst Sees Pre-Crash Buying Window

Featured image for “Bitcoin Bonanza Before The Halving? Analyst Sees Pre-Crash Buying Window”
7:52 am April 14, 2024

Avalanche (AVAX) Downtrend Persists Amid Market Uncertainty

Featured image for “Avalanche (AVAX) Downtrend Persists Amid Market Uncertainty”
9:49 pm April 13, 2024

Binance Labs backs BounceBit for Bitcoin restaking and CeDeFi revolution

Featured image for “Binance Labs backs BounceBit for Bitcoin restaking and CeDeFi revolution”
7:56 pm April 13, 2024

Market Expert Reveals Why Solana Price Is Poised To Go Higher

Featured image for “Market Expert Reveals Why Solana Price Is Poised To Go Higher”
2:37 pm April 13, 2024

Bitfinex introduces tokenized debt for El Salvador’s first Hampton by means of Hilton Hotel

Featured image for “Bitfinex introduces tokenized debt for El Salvador’s first Hampton by means of Hilton Hotel”
7:59 am April 13, 2024

Analyst Predicts ‘Realistic’ 5x Surge To $3

Featured image for “Analyst Predicts ‘Realistic’ 5x Surge To $3”
7:50 am April 13, 2024

IBM researchers to put up FHE demanding situations at the FHERMA platform

Featured image for “IBM researchers to put up FHE demanding situations at the FHERMA platform”
7:25 am April 13, 2024

Algotech’s 3rd presale degree surpasses $3.7m, with over 94 million tokens offered up to now

Featured image for “Algotech’s 3rd presale degree surpasses $3.7m, with over 94 million tokens offered up to now”
12:13 am April 13, 2024

Omni Network lands on Binance Launchpool as Algotech alternatives presale momentum

Featured image for “Omni Network lands on Binance Launchpool as Algotech alternatives presale momentum”
8:10 pm April 12, 2024

Merging top-down and bottom-up making plans approaches

Featured image for “Merging top-down and bottom-up making plans approaches”
8:01 pm April 12, 2024

Shiba Inu Sell Pressure Is Dropping

Featured image for “Shiba Inu Sell Pressure Is Dropping”
4:53 pm April 12, 2024

Hong Kong’s spot ETFs document drives BTC upper; traders pile into Bitbot presale

Featured image for “Hong Kong’s spot ETFs document drives BTC upper; traders pile into Bitbot presale”
9:41 am April 12, 2024

Monero (XMR) trade troubles proceed with some other main delisting

Featured image for “Monero (XMR) trade troubles proceed with some other main delisting”
8:31 am April 12, 2024

IBM Blog

Featured image for “IBM Blog”