- Avalanche experienced positive growth in the number of transactions.
- The calculation for developer activity just finished in November with a sharp upside.
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 the latest update.
Read Avalanches (AVAX) Price Prediction 2023-2024
Avalanche noted in its latest update that it experienced positive growth in the number of transactions. In particular, it pointed out that the network’s monthly transactions topped 68 million in October. The report highlighted the contrast between network growth in terms of transactions on the network and AVAX’s price action.
Over the past few months, Avalanche has experienced all-time highs with monthly transactions exceeding 68 million (Sept. 2022) and total transactions exceeding 450 million.
— Avalanche 🔺 (@avalancheavax) 1 December 2022
But what does this mean for the Avalanche going forward?
The common expectation is that positive network growth has a direct correlation with price action. That has not been the case for AVAX price action which has been largely bearish over the past 11 months. But is this new update enough to stimulate renewed investor interest?
AVAX’s weighted sentiment experienced a notable increase in the last week of November. This is confirmation that investors are now taking a more bullish stance on cryptocurrency. The positive report could also give a boost to investor sentiment and improve the outlook for December.
The improved weighted sentiment also resulted in increased demand, particularly from the derivatives market. A look at the funding rates for Binance and DYDX confirms this. Both metrics have improved significantly towards the end of the month, especially compared to 4-week lows.
The improved AVAX investor sentiment may also be supported by healthy developments. The calculation for developer activity just finished in November with a sharp upside. This observation adds to the list of factors currently favoring AVAX bulls, which could also underline performance for the remainder of 2022.
AVAX price action
AVAX just ended November with a 13% upside from its current monthly low. Despite this, the press time price of $13.02 is still close to the current 2022 low, and here’s why this is important for investors.
AVAX’s cash flow already indicates remarkable accumulation from the current trough area. It has also regained some relative strength, but the current upside indicates a lack of strong momentum. This is likely because investors remain wary of the potential for more downside.
Low whale participation has also resulted in a weak bullish upswing. 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 slated for a strong long-term recovery as it will be supported by the robust organic tool during the next big bull run.