Key Insights:
- Avalanche DeFi TVL just jumped nearly 40% after its Octane upgrade went live.
- Grove tokenizes $250M worth of Janus Henderson funds on Avalanche.
- A daily close above $27 could send Avalanche price to $35 and beyond.
Avalanche (AVAX) price is trending upward, and its on-chain statistics prove that the activities are complementing price moves. According to an Avalanche post on X (formerly Twitter), the L1 blockchain is becoming a home where capital is connecting.
Aside from price, the chain activity responded more than price, but what drove this?
Avalanche DeFi Surges After Octane Upgrade
The total value locked (TVL) for Avalanche DeFi had surged by almost 40% at the time of writing, with Messari report saying that it was up 37% QoQ, achieving a value of more than $2.2 billion. The value locked was equal to about 85 million AVAX tokens.
As per the report, this surge came immediately after the Octane Upgrade. The upgrade included the introduction of a dynamic fee mechanism on Avalanche C-Chain, reducing gas by about 43%. That is from $0.05 to $0.03. That way, it could be deduced that the upgrade played a key role in this positive shift.
According to CryptoRUS on X, the aforementioned change came as a result of the high speeds in transactions, lower fees, and better UX interface. These all led to increased use of the blockchain, stemming from the attention and capital inflows.
Apart from a growing TVL, AVAX crypto also saw a surge in DEX volume, which stood at $263 million in the last 24 hours. Its stablecoin market cap also reached $1.65 billion as its active addresses reached 52,000 as of press time.
Grove Tokenizes $250M on Avalanche
A 37% surge in TVL could have resulted from the increasing tokenization of Real World Assets (RWAs). The value of RWAs is locked, thus it could also have contributed to this change.
For this reason, Grove launched a $250 million fund that was targeting RWA deployment, which was bringing next-generation credit fully on-chain.
That in mind, this development was also introducing Centrifuge and $373B AUM asset manager Janus Henderson. These players were major in the space of tokenization, which could be termed to have found its feet on blockchains.
This added to the list of Apollo, WisdomTree, and BlackRock. It made Avalanche become another hub where institutions were building the future of finance. That means it was getting prepared to compete with Ethereum (ETH). Ethereum is the biggest blockchain where most institutions have tokenized their assets.
AVAX Price Maintains Bullish Structure
The surge could also have stemmed from its recent surge in price, which could have prompted users to lock the AVAX token. It would be for the purposes of earning profits simultaneously from price change and rewards from staking.
According to renowned analyst, Ali Charts on X (formerly Twitter), if AVAX price closed above $27 on the daily time frame, it could reach $35. Avalanche price chart made a triple bottom at the $15 zone before rising to $27.
However, as per CoinMarketCap, the 24h price change for the altcoin was at 0.11% at the time of writing. This suggested that today’s movement was negligible, but was completely understandable after the run from its bottom.
As AVAX traded around the $27, which was also the range’s high, its reaction around this level could define its short-term outlook. A break and sustained stay above this level could take the altcoin past $35, thus $46 looked viable.
Alternatively, AVAX could extend its range-bound movement if it fails to break this level. It could open the door for a revisit of $20, a price point where buyers were sitting. A tap into this zone could give the much-needed momentum to break the resistance.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
