Avalanche (AVAX) challenges Bitcoin with negative correlation
Avalanche (AVAX) is a relatively new platform in the DeFi space developed by Ava Labs. With its emergence as a DeFi hub in 2021 and contrary to the downward trend of the broader market, AVAX is consolidating as one of the top assets.
Avalanche vs. Bitcoin
Of all the top altcoins in the crypto market, AVAX was one of the few that managed to maintain an uptrend during the bear market when most other altcoins were in the red, AVAX managed to stay up and create a green candle.
AVAX price promotion | Source: TradingView
Altcoins remained bullish in November and December. In November, it made 109% before correcting 41.46% into the post-December recession; in fact, it saw the token’s longest period of decline in early 2022.
At the time of writing, the AVAX price is up more than 3% and is trading at $ 88.86.
AVAX’s correlation to Bitcoin might just be the main reason Avalanche defies broader market trends, albeit in the short term. Unlike other crypto assets that have a positive correlation, Avalanche currently has a negative correlation of 0.4 with Bitcoin.
Avalanche Correlation with Bitcoin | Source: MacroAxis
In addition, this correlation has made Avalanche an attractive and profitable network for investors and developers alike. This could be the reason why the number of Avalanche-based dApps is increasing.
Recently trader Joe of the decentralized exchange (DEX) released his roadmap to expand the Avalanche ecosystem, aiming to become DeFi innovation center and ambassador for NFT and Metaverse.
In addition, after the rally at the end of December, Bitwise Avalanche placed 5th out of the 10 large cap crypto indices, behind Bitcoin, Ethereum, Solana and Cardano.
Avalanche enters the top 10 large-cap crypto indices | Source: Bitwise
In addition, on January 6, one of the largest decentralized farming pools, Unifarm, launched on Avalanche and became one of only four chains that have scaled dApps after Ethereum, Polygon and BSC.
Avalanche may not have a strong social media presence like some of its competitors, but its network adoption speaks volumes. Should this trend continue, AVAX could also soon run its own rally.
The avalanche’s social affection | Source: Antiment
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 the Facebook page
Author
Market
Avalanche (AVAX) challenges Bitcoin with negative correlation
Avalanche (AVAX) is a relatively new platform in the DeFi space developed by Ava Labs. With its emergence as a DeFi hub in 2021 and contrary to the downward trend of the broader market, AVAX is consolidating as one of the top assets.
Avalanche vs. Bitcoin
Of all the top altcoins in the crypto market, AVAX was one of the few that managed to maintain an uptrend during the bear market when most other altcoins were in the red, AVAX managed to stay up and create a green candle.
AVAX price promotion | Source: TradingView
Altcoins remained bullish in November and December. In November, it made 109% before correcting 41.46% into the post-December recession; in fact, it saw the token’s longest period of decline in early 2022.
At the time of writing, the AVAX price is up more than 3% and is trading at $ 88.86.
AVAX’s correlation to Bitcoin might just be the main reason Avalanche defies broader market trends, albeit in the short term. Unlike other crypto assets that have a positive correlation, Avalanche currently has a negative correlation of 0.4 with Bitcoin.
Avalanche Correlation with Bitcoin | Source: MacroAxis
In addition, this correlation has made Avalanche an attractive and profitable network for investors and developers alike. This could be the reason why the number of Avalanche-based dApps is increasing.
Recently trader Joe of the decentralized exchange (DEX) released his roadmap to expand the Avalanche ecosystem, aiming to become DeFi innovation center and ambassador for NFT and Metaverse.
In addition, after the rally at the end of December, Bitwise Avalanche placed 5th out of the 10 large cap crypto indices, behind Bitcoin, Ethereum, Solana and Cardano.
Avalanche enters the top 10 large-cap crypto indices | Source: Bitwise
In addition, on January 6, one of the largest decentralized farming pools, Unifarm, launched on Avalanche and became one of only four chains that have scaled dApps after Ethereum, Polygon and BSC.
Avalanche may not have a strong social media presence like some of its competitors, but its network adoption speaks volumes. Should this trend continue, AVAX could also soon run its own rally.
The avalanche’s social affection | Source: Antiment
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 the Facebook page
Other Posts
Related Posts
Latest
Rekt Raises $1.5M Seed Round Backed by Angels and Community, Following Sell-Out Success of Rekt Drinks
Trust Wallet CEO Backs Web3, Plus Wallet’s Top-Tier Encryption Ensures Secure Asset Access Amid Crypto Liquidation Hits $277M
Press Release
Rekt Raises $1.5M Seed Round Backed by Angels and Community, Following Sell-Out Success of Rekt Drinks
Trust Wallet CEO Backs Web3, Plus Wallet’s Top-Tier Encryption Ensures Secure Asset Access Amid Crypto Liquidation Hits $277M
