Avalanche, Ethereum and how BTC.b could spark a rally for AVAX

  • Avalanche’s BTC.b has seen massive supply growth
  • But, Avalanche’s TVL has seen a continued decline

According to Data Analytics’ December 2 tweet, the amount of Bitcoin Avalanche Bridged [BTC.b] on Avalanche [AVAX] surpassed that of the Ethereum network. This development suggests that users may have spotted new opportunities on the Avalanche network and shown their faith in the protocol.

Lily Avalanche [AVAX] Price Prediction 2022-2023

It’s a “wrapping”

BTC.b represents bitcoin holdings on the Avalanche network. It is similar to WBTC, as both are ERC-20 tokens, which are pegged to the value of BTC.

BTC.b, was launched in June 2022, when WBTC had been around for two years. DDespite this, BTC.b’s supply managed to compete with that of wrapped bitcoin as it has seen an increase since its inception. Although it experienced a slight decline in the period following the FTX collapse, its momentum picked up soon after.

Source: Dune Analysis

However, despite BTCB’s growth, Avalanche has not been able to exhibit the same level of improvements in DeFi. According DeFiLlamaavalanches TVL rose from 1.33 billion to 860.9 billion in 30 days. Additionally, as of December 3, Avalanche’s TVL jumped 1.81%.

The avalanche does not feel well?

AVAX’s fees have taken a hit over the past month. The costs generated by avalanche had decreased significantly over the past 30 days and had fallen 13.6%, according to Token Terminal.

Source: token terminal

avalanche also wasn’t able to fare well given his on-chain metrics. Its volume last month rose from 390 million to 192 million. However, its development activity has spiked in recent days, suggesting that the Avalanche team has contributed a great deal to its GitHub.

This suggested that there could be several upgrades and upgrades on the way to Avalanche.

Source: Santiment

One of the reasons for the surge in development activities could be the recent collaboration with Alibaba. However, it remains to be seen whether AVAX will benefit from these upgrades and collaborations.

At the time of writing, AVAX was trading at $13.63. Its price has increased by 2.30% in the last 24 hours.

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