Coin of the Day- AVAX

Coin of the Day- AVAX

Today we are talking about a coin that’s the Usain Bolt of cryptocurrencies. Its blockchain can process up to 4500 transactions per second. Yes, we are talking about Avalanche!

#Day 10 – Avalanche (AVAX) Coin Of The Day Report

AVAX Score

In a very short time, Avalanche has gained a lot of momentum by enabling high-speed transactions and near-instant transaction confirmations.

How Did We Arrive at This Score?

We evaluated Avalanche on the following parameters.

1. Price Performance ✅

Though past price movements don’t necessarily dictate future prices, it’s good to know how your investments have performed historically.

2. Fundamental Analysis ✅

In this section, we evaluate the Avalanche network based on critical on-chain metrics.

2.1. Active Addresses Count

Active address count indicates the overall activity on the network. A growing active address count signals a growing network and positively impacts the network token’s price.

Average monthly active addresses on the Avalanche network went from ~ 700k in 2021 to around 4M in 2023 at an annual growth rate of 139%.

2.2. NVT Ratio

💡NVT Ratio: The NVT ratio compares a cryptocurrency’s market cap to its transaction volume. A high ratio suggests a potential bubble since the market cap is outpacing the transaction volume. A low ratio indicates an undervalued token.

P.S. The NVT ratio for each cryptocurrency varies. Also, one shouldn’t look at NVT in isolation and must always combine it with other indicators. 

2.3. Blockchain Network Profitability

We measure blockchain network profitability by deducting the net incentives given to network participants, like miners and validators, from the net income generated by the platform.

A majority of the Avalanche network’s expenses are accounted for by token incentives. In May 2023, it was at a deficit of $81.33M.

3. Community Sentiment

The below pie chart measures the sentiment for Avalanche across Telegram and Twitter. Over the last 7 days, Avalanche was mentioned ~22k times, of which ~5.1k mentions were positive, ~800 were negative, and about 16.1k were neutral.

4. Technical Analysis ✅

Oscillators: They suggest a buy signal when an asset is oversold, indicating that the security may be underpriced and vice versa.

Moving Averages: When a short-term moving average crosses above a long-term moving average indicator, it suggests that the trend is bullish and vice versa.

💡Oscillators indicate that AVAX may be underpriced, and moving averages suggest active selling of the token.

Key Highlights

  1. Q1 2023 saw Avalanche’s market cap rebounding with a 65.8% quarter-over-quarter (QoQ) increase.
  2. Avalanche partnered with some major mainstream players like AWS and Tencent Cloud to accelerate the development and adoption of its ecosystem.
  3. Developments on the blockchain, like the launch of HyperSDK, Glacier API, and integration with The Graph, were carried out to usher in developers.

Disclaimer: None of the information in the email is intended to be financial advice. Please do your own research before making any investments.


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