Avalanche (AVAX) recovery extended into its third week, primarily in the wake of similar upside retracement across the top crypto assets.
On Thursday, AVAX's price rallied by nearly 16% to reach $96.50, its best level since Jan. 14, 2022. The massive intraday move came as a part of a recovery that started Jan. 22, after the Avalanche token bottomed out near $53. As a result, AVAX's net rebound came out to be more than 80%.
Crypto markets have been whipsawed since the beginning of 2022 as investors assessed the U.S. Federal Reserve's monetary tightening prospects. After reaching its record high above $150 in November 2021, AVAX lost as much as 65% of its value in what many have termed as "crypto winter."
Similarly, top cryptocurrencies Bitcoin (BTC) and Ether (ETH) plunged by as much as 52% and 57% from their Nov. 2021 record highs. But they recovered almost half of their losses after bottoming out in late Jan. 2022, thus prompting other crypto assets — including AVAX — to undergo similar healing rallies.
AVAX price also rose as Avalanche—as a standalone blockchain project—reported massive network growth at 2021's close.
That included a rise in the number of its daily active addresses to 70,000 per day in Q4 versus 10,000 per day in Q3 and a 714% rise in the total value locked (TVL), the fastest growth among its competitors within the Layer-1 and Layer-2 categories, after the arrival of leading Ethereum protocols, Aave and Curve, into its ecosystem.
Interestingly, the Avalanche network grew in Q4 despite a drop in its net market valuation in the same period, suggesting AVAX merely reacted to turbulence in the crypto and, in turn, the global markets, led by the Fed's so-called taper tantrums.
But a report co-authored by Messari
Read more on cointelegraph.com