In the dynamic world of cryptocurrency, AVAX has been a name to watch closely over the past month. With investor interest piquing, the open interest in AVAX has shown a notable uptick, reminiscent of its stance in May 2022. This ascending trajectory has not only bolstered the altcoin’s price but has also set the stage for a potential massive rally.
A remarkable surge in open interest has unfolded, according to figures pulled from the analytical depths of Coinglass. AVAX’s open interest has ascended to an impressive $224 million. Tellingly, the data reveals a sharp 10% increase in just 24 hours, pushing the open interest figure beyond the 10.04 million AVAX mark.
The global cryptocurrency exchange Binance holds significant sway over this trend, with almost half of the open interest aggregated there. Their exact holding is a substantial 4.48 million AVAX, translating to more than $100 million – indicative of intense trading activity on the platform. Throughout the same 24-hour window, the total open interest observed a 9.94% uptick.
Clearly not alone in this AVAX fervor, ByBit exchange positions itself as the second-largest holder with 2.04 million AVAX valued around $46.09 million. Trailing behind is BingX, accounting for 1.24 million AVAX, worth approximately $27.59 million. Yet, neither claimed the most substantial rise in open interest during the last day.
This title belonged to Bitmex exchange, where open interest saw a steep increase of 17.78%, bolstering their holdings to 55,340 AVAX, worth about $1.53 million. The aggregated stake in AVAX has risen sharply from $82.8 million on October 20 to a towering $224 million on November 20. This represents a striking growth of 170% over the span of one month.
Within this framework of surging open interest, AVAX has maintained its stance above the $22 price point. This current market scenario alludes to brighter prospects, potentially a rally surpassing the $30 mark. Such speculations gain strength from historical patterns observed in May 2022 when, amid similarly high open interest, AVAX’s price comfortably exceeded $50.
Historic trends tend to repeat in the cryptocurrency realm, suggesting a subsequent price surge for AVAX. Past instances like the August 2021 surge – where open interest shot from $14.53 million to $123.5 million, dragging the price from $19.15 to $55 – lend credence to the theory that AVAX’s value escalates in alignment with its open interest.
With all historical data points considered, current open interest volumes imply that AVAX could be undervalued, its fair price hovering around $40. Should this trend persist, not only might we witness the altcoin breaching the $30 frontier, but it may very well be paving its way to a new valuation paradigm.
