Avalanche Token AVAX Soars into Top 10 Amid Record Interest

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In a remarkable ascent, Avalanche has witnessed its proprietary token, AVAX, climb swiftly through the ranks over the past month. Its meteoric journey has not gone unnoticed, cresting into the echelon of the top 10 tokens by market capitalization. This bull run has been bolstered by a resurgence of activity on the Avalanche network, which has fueled a corresponding spike in open interest.

Tuesday heralded a new milestone for Avalanche as open interest soared to an unprecedented $413 million, an all-time peak ushered in by AVAX’s climb to $40. This record-breaking figure on December 12 came on the heels of a persistent month-long elevation. Concomitantly, as the token’s value escalated, so did the open interest, marking daily acmes throughout the advent of December.

The inception of this surge traces back to October, during which open interest languished around the $70 million mark. But November saw a palpable shift in tide, with traders positioning their stakes in the digital asset, signaling a renewed confidence in its potential.

From the dilatory days of November to the bustling activity in December, AVAX’s open interest ballooned by an impressive 400%. The open interest alone burgeoned by 19% on Tuesday, culminating in a grand total of 11.43 million AVAX across all trading platforms.

Scrutiny reveals that a staggering 73% of the total open interest emanates from just two exchanges: Binance and ByBit. Binance commands a lion’s share with 44%, translating to $184 million or 4.54 million AVAX. ByBit trails with a significant 28.8%, amounting to $119.67 million or 2.95 million AVAX. Other notable contributors to this robust ecosystem include BingX, OKX, and Bitget.

While AVAX’s price has retracted slightly to $36, the exponential rise in open interest remains a bullish harbinger for its market value. Historically, AVAX’s price trajectory tends to echo the trend in its open interest; this pattern was evident between 2021 and 2022 when the token’s price surged past the $100 seminal mark prior to its subsequent decline in 2022.

Future projections posit that if Avalanche’s open interest continues its upward trend, a domino effect will ensue with AVAX potentially transcending the $50 threshold. While the aspirational $100 watermark appears distant, with sustained momentum, it could very well be within striking distance by 2024.

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