- Avalanche has seen positive growth in the number of transactions.
- The measurement of developer activity just ended in November with a strong increase.
2022 has been a bearish month for AVAX and the rest of the crypto market in general. Despite this, Avalanche has achieved positive growth in other areas, as highlighted in its latest update.
Read Avalanche (AVAX) Price Prediction 2023-2024
Avalanche noted in its latest update that it has seen positive growth in the number of transactions. In particular, he pointed out that the network’s monthly transactions peaked at more than 68 million in October. The report highlighted the contrast between the network’s growth in terms of network transactions and the evolution of AVAX’s prices.
Over the past few months, Avalanche has seen all-time highs with monthly transactions exceeding 68 million (Sep 2022) and total transactions exceeding 450 million.
— Avalanche 🔺 (@avalancheavax) December 1, 2022
But what does this mean for the future of Avalanche?
The common expectation is that positive network growth has a direct correlation to price action. This has not been the case for AVAX’s price action, which has been largely bearish over the past 11 months. But is this new update enough to spark renewed investor interest?
AVAX weighted sentiment saw a notable surge in the last week of November. This is a confirmation that investors are now taking a more bullish stance towards cryptocurrency. The positive report could also give a boost to investor sentiment and improve the outlook for December.
Improved weighted sentiment has also led to improved demand, especially from the derivatives market. A look at Binance and DYDX funding rates confirms this. Both metrics improved significantly towards the end of the month, especially from their 4-week lows.
AVAX’s current improvement in investor sentiment could also be supported by healthy development. The measurement of developer activity just ended in November with a strong increase. This observation adds to the list of factors currently favoring AVAX bulls, which could also underline his performance for the remainder of 2022.
AVAX just ended November with a 13% rise from its current monthly low. Despite this, its price of $13.02 at press time is still close to its current 2022 low, and here’s why it matters to investors.
AVAX’s money flow is already indicating a notable accumulation from its current low range. It has also regained some relative strength, but the current uptrend indicates a lack of momentum. This is likely due to investors remaining cautious about further downside potential.
The low participation of whales also led to a weak bullish rally. Nevertheless, market sentiment is gradually improving. If this remains the case, there is a significant likelihood of a strong bullish resurgence for the rest of the year.
AVAX could also be set for a strong long-term rally as it will be supported by the robust organic utility in the next big bull run.