This gives AVAX another chance to come back

AVAX recovered quite well in the first 20 days of November, during which time the price rose 134% from $ 62 to $ 147. After that, however, it gradually went down.

Regardless of the general deterioration in the market or the current correction by AVAX, the price is expected to start again soon and set records in the charts.

AVAX 4-hour chart | Source: Tradingview

Exciting activities in the chain

Avalanche’s ecosystem is slightly different from that of other networks. AVAX tokens exist on the X-Chain and can be traded there. On C-Chain, AVAX is used in smart contracts or to pay gas fees.

It is important to note that Avalanche will burn any AVAX received as transaction fees, as per tweets officially. In November alone, the network burned 162,445.16 AVAX on both C-Chain and X-Chain. As a result, the total number of tokens burned stands at 479,840, which is worth more than $ 50 million at press time.

The source: avascan.info

The burning mechanism permanently removes tokens from the circulating supply and effectively dumps the underlying asset. In addition, it directly affects the dynamics of supply and demand. As a result, AVAX will become scarcer over time and the price has the potential to rise sharply.

It should be noted here that once Ethereum began to burn its tokens, it was not immediately drained. ETH needs more time and the price is just starting to respond positively. This also happened with the LUNA of the Terra Protocol. So it will be some time before AVAX begins to respond consistently to the entire combustion mechanism.

On the other hand, the on-chain performance has been pretty good so far. For example, the number of daily transactions on Avalanche’s C-chain is increasing. This means that more and more people are using the network to make transactions.

The relatively low average gas price is one of the main reasons for the increased number of transactions and the attractiveness of the network.

The source: stats.avax.network

Interestingly, the cumulative number of contracts deployed on Avalanche’s C-Chain is also increasing. This is essentially another sign of healthy internet use.

In addition, when comparing the months of this year, the number of daily active addresses rose the most in the last month. Almost 652,000 addresses interacted with the network’s C-chain in November.

The source: stats.avax.network

The strong state of the above indicators should trigger an AVAX rally in the coming days. Thanks to the burning mechanism of the protocol, the medium-term outlook looks quite optimistic at this point in time.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page

CoinX

Recent Posts

Dogecoin Price Gets $5 Prediction, Shiba Inu To Rally 1,100%, And ETFSwap (ETFS) To Jump 135x

Here are the latest predictions for Dogecoin, Shiba Inu, and ETFswap.

17 mins ago

AVAX Hits $1B in DeFi, Cardano Expected to Surge—BlockDAG Leads with $110M Presale & 100% Bonus!

Discover BlockDAG's 100% bonus and $110M presale surge that’s sparking interest among crypto enthusiasts. Also,…

17 mins ago

Crypto Institutional Investors Move To ETFSwap (ETFS) Amid $500 Million Liquidity Injection Expectations

Discover why crypto investors are moving to ETFSwap (ETFS) as $500 million liquidity injection is…

3 hours ago

Buyers Rush to Maximise Gains with BlockDAG’s 100% Bonus Offer; Plus, ETH Holds Strong as Solana Challenges Rivals

Learn about BlockDAG's $110M presale achievement and the whopping 100% bonus offer, alongside Ethereum's growth…

5 hours ago

Thai Police Corruption Case Involving Officers and Extortion

Thai police corruption exposed as officers extort millions in USDT from a Chinese man under…

8 hours ago

SafePal Telegram Wallet Launches with Swiss Bank Accounts and CeDeFi

SafePal Telegram Wallet allows 950 million users to create compliant crypto-friendly Swiss bank accounts, integrating…

9 hours ago

This website uses cookies.