- Avalanche begins to witness large volume on its protocol as interest in EUROC rises.
- AVAX prices begin to surge, however, stakers turn pessimistic.
Avalanche[AVAX] has been gaining large traction in terms of activity over the last month. One of the major reasons for the growing activity on the Avalanche network would be rising interest in stablecoins.
Realistic or not, here’s AVAX’s market cap in BTC’s terms
The Euro angle
Specifically, the Avalanche network benefited most from the growing interest in EUROC. Euro Coin, or EUROC, is a euro-backed stablecoin that’s accessible globally on Ethereum and Avalanche. Similar to USDC, Euro Coin is issued by Circle under a full-reserve model.
According to recent data, Avalanche has seen more volume of the EUROC stablecoin than Coinbase and Ethereum combined. The volume has been driven on the Avalanche network primarily by the dApp Trader Joe. The volume relating to EUROC on the dApp grew by 35.5% in the last 24 hours according to CoinMarketCap’s data.
Avalanche does more volume than Coinbase and Ethereum combined for $EUROC
This is not yet including the new @dexalotcom market, @CablesFinance and some others which would increase it approx another 30%https://t.co/kQgehL4iBB pic.twitter.com/MLkBAN7B5i
— Luigi D’Onorio DeMeo🔺 (@luigidemeo) July 8, 2023
Due to the high interest in EUROC on Avalanche, the number of daily active users on the protocol grew by 2.4% in the last 24 hours according to Token Terminals data. In terms of revenue, there was a 13.5% spike observed during the same period.
Impact on price
The AVAX token witnessed similar growth as its protocol in terms of price. Since the 10 June, the price of AVAX grew by 32.58% after testing the $10.72 support level. The price showed higher lows and higher highs establishing a bullish trend during this period, till it approached $13.71 level after which the price experienced a minor correction.
However, AVAX managed to bounce back and surpassed the $13.71 level, and managed to re-test the $14.27 resistance. The RSI indicated that the momentum was with the buyers at press time. Additionally, the CMF showed that the money flow was favoring the bulls as well.
Source: Trading View
Due to these factors, traders were turning bullish toward AVAX. Coinglass’ data indicated that the percentage of bullish positions taken in favor of AVAX increased from 47% to 52% in the last few days.
Read Avalanche’s Price Prediction 2023-2024
However, the same optimism wasn’t showcased by stakers. Staking rewards’ data indicated that the number of addresses staking Avalanche had fallen by 2.97% over the last week.
Source: Staking Rewards