Avalanche (AVAX) posts triple-digit monthly gain as TVL surge points to user growth
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Further validating the positive outlook for Avalanche was total value locked (TVL) data that reflects growth within the project’s ecosystem.
An analysis of the TVL data helps understand investor and developer interest in a blockchain or a decentralized application (dApp). TVL is similar to bank deposits for decentralized finance (DeFi) projects and may influence the market’s direction.
According to the chart above, there is clear evidence that the TVL on the Avalanche blockchain has been increasing in tandem with the price. Data from DeFi TVL aggregator DeFiLlama revealed that the amount locked on Avalanche rose from $482.93 million on Oct. 15 when AVAX price began rising to the current value of $911.12 million. This represents a 90% increase.
This increase in TVL is a sign of increasing demand among large on-chain users. This is highlighted by increasing development activity, an on-chain metric used to assess the progress and innovation of cryptocurrency projects.
According to Santiment, the development activity on Avalanche has increased from 44 GitHub commits in mid-October to 284 GitHub commits on Dec.12.
This increase in development activity is also deemed bullish as it signals increased network users which in turn leads to increased demand for the AVAX token.
The increase in development activity for the smart contracts protocol has emerged from the latest developments within the ecosystem. For example, JP Morgan’s blockchain Onyx announced last month that it was using an Avalanche subnet in a proof-of-concept trial under the Monetary Authority of Singapore’s Project Guardian.
On Dec. 12, Avalanche announced that the creator of popular games Pegaxy and Petopia, Mirai Labs is migrating its ecosystem from Polygon to an Avalanche subnet.
The Avalanche Evergreen subnet is an individual blockchain that is specifically designed to suit the needs of institutions with extra consideration given network privacy, gas features, and being permissioned.
“With its Subnet technology, unmatched developer support and exceptional scalability, Avalanche is increasingly known in the blockchain industry as the go-to network for Web3 gaming.”@RealCoreyWilton, Co-Founder and CEO of Mirai Labs, on choosing Avalanche.
— Avalanche (@avax) December 12, 2023
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
