Avalanche stablecoin records this milestone, but AVAX stumbles
Avalanche [AVAX] recently achieved a significant milestone in its stablecoin market cap. In light of this recent accomplishment, how have other crucial metrics reacted?
Avalanche stablecoin hits months-high levels
An analysis of the stablecoin market cap metric on DefiLlama for Avalanche showed that the network has recently reached a level that has yet to be observed in months.
According to the data, at the time of this writing, the stablecoin market cap was around $1.15 billion.
This surge is significant, considering that the stablecoin market cap was previously around $1 billion, following a notable decline around November 2023.
However, in the last 48 hours, there has been a sharp increase, propelling it to its press time level.
Source: DefiLlama
The increase in the stablecoin market cap suggested a notable influx of cash into the ecosystem.
Other Avalanche metrics struggle to rise
The recent surge in Avalanche’s stablecoin market cap has not significantly impacted the Total Value Locked (TVL) in the ecosystem. Despite an increase in TVL, it was not as pronounced as observed in the stablecoins.
Standing at around $888 million at press time, the TVL showed a more moderate uptick. Additionally, the analysis of Avalanche’s trading volume showed no significant recent movements.
While there have been some signs of increase, the overall trend has been a decline, with the 24-hour volume at around $150 million at the time of writing.
Additionally, the analysis of network inflows showed a recent low, with the press time inflow sitting at over $3.8 million.
AVAX on a roll
AMBCrypto found that Avalanche’s daily timeframe chart showed a consistent upward trend in price for the past eight days, with only two exceptions.
On the 9th of February, AVAX successfully surpassed its resistance, represented by the short Moving Average (yellow line). It has maintained its position since.
At the time of this writing, AVAX was trading at around $41.3, marking an increase of over 4%.
Source: Trading View
Furthermore, the recent upward momentum has propelled it above the neutral line, approaching the overbought zone on its Relative Strength Index (RSI).
The prevailing sentiment surrounding the network may contribute further to the price trend if it continues.
