- Avalanche has seen positive growth in the number of transactions.
- The developer activity metric just ended November with a strong uptick.
2022 has been a bearish month for AVAX and the rest of the cryptocurrency market in general. Despite this, the Avalanche has had positive growth in other areas, as shown in the latest update.
Read the Avalanche (AVAX) 2023-2024 price forecast
Avalanche noted in its latest update that it has seen positive growth in the number of transactions. In particular, it noted that the network’s monthly transactions peaked above 68 million in October. The report highlighted the discrepancy between the network’s growth in terms of transactions on the network and the price action of AVAX.
In recent months, Avalanche has seen an all-time high with monthly transactions exceeding 68M (September 2022) and total transactions reaching 450M.
– Avalanche 🔺 (avalancheavax) December 1, 2022
But what does this mean for the Avalanche going forward?
A common expectation is that positive network growth has a direct relationship to price action. This was not the case for AVAX price action which has been largely bearish over the past 11 months. But is this new update enough to spur renewed investor interest?
AVAX Weighted Sentiment saw a significant increase in the last week of November. This is confirmation that investors are now taking a bullish stance towards the cryptocurrency. A positive report could also provide a boost to investor sentiment and improve the outlook for December.
The weighted sentiment also improved demand, particularly from the derivatives market. A look at Binance and DYDX funding rates confirms this. Both metrics improved significantly at the end of the month, especially compared to their 4-week lows.
The currently improving investor sentiment in AVAX may be supported by the healthy developments. The developer activity metric just ended November with a strong uptick. This note adds to the list of factors currently favoring the AVAX bulls, which could also confirm its performance for the rest of 2022.
AVAX price action
AVAX just ended November up 13% from its low for the current month. Despite this, its price at post of $13.02 is still close to the current 2022 low, which is why this is so important to investors.
AVAX’s money flow already indicates a notable buildup from its current lower range. It has also recovered some relative strength, but the current bullish trend indicates that there is no strong momentum. This is most likely because investors are still wary of the possibility of further decline.
Low voter turnout also led to a weak upward recovery. However, the market sentiment is gradually improving. If this remains the case, there is a high probability of a strong bullish rally for the rest of the year.
AVAX may also be set for a strong long-term recovery as it will be supported by the strong organic instrument during the next big rally.