Analysts affirm AVAX price as extremely undervalued, expect Avalanche to decouple
- Daily trade volume on Avalanche's top decentralized exchange, Trader Joe, is over two times that of competitors.
- Avalanche's multi-million dollar funding initiatives for attracting decentralized applications has triggered a spike in the token's on-chain activity.
- Gas consumption by layer-2 protocols is driving Ethereum transaction fees higher.
Analysts are of the opinion that the price-value disconnect in Avalanche is likely to trigger a rally in the token. AVAX on-chain activity is on the rise.
Analysts expect AVAX price to rally with rising on-chain activity
Trader Joe, the second largest decentralized application on the Avalanche network now has $1.25 billion in total value locked (TVL). TVL is the equivalent of market capitalization for decentralized applications. Based on that, daily trade volume on Trader Joe has climbed consistently.
Since the announcement of $180 million worth of incentives to attract decentralized applications to the Avalanche Network, Trader Joe has seen a consistent growth in trade volume, over $30 million per day (over the past 7 days).
Trader Joe trading volume
@LomahCrypto, analyst at cryptocurrency trading group The Haven , is of the opinion that the price of Avalanche network’s native token AVAX is disconnected from its value. Dapps like Trader Joe contribute to the rising on-chain activity on the Avalanche network. Therefore, AVAX price is expected to decouple from the rest of the tokens in the ecosystem.
Back when $AVAX was ~$45.
— Loma (@LomahCrypto) September 26, 2021
Your job is to identify the disconnect between price and value BEFORE the majority.
There’s a derivative dex doing double/triple the volume as it’s competitors and still outside the Top 100.
Do the math, xD https://t.co/BjjhDAxg98
AVAX is competing with other layer-1 protocols and poses tough competition for cryptocurrencies in the top ten. Alongside AVAX’s rising market capitalization, Ethereum’s transaction fees have increased. A spike in transaction volume on layer-2 two solutions has increased the gas prices on Ethereum network, as Avalanche prepares for a breakout.
Pseudonymous cryptocurrency trader and analyst @TraderKoz admitted to opening a long position in AVAX, based on the current price action.
$AVAX
— TraderKoz (@TraderKoz) September 24, 2021
I'm long, don't hurt me pic.twitter.com/jkZl5krLBd
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
