The Avalanche blockchain has showcased conflicting performance indicators following its Octane upgrade implementation, reporting a remarkable 40% surge in decentralized finance (DeFi) total value locked (TVL), now exceeding $1.5 billion.
Simultaneously, open interest in AVAX derivatives climbed more than 15% to $835.44 million, reflecting heightened market interest as the cryptocurrency tests the critical $26-$28 price resistance level. Technical analysts suggest sustained bullish momentum could trigger a significant breakout.
Contrasting these gains, network metrics reveal concerning downtrends. Social engagement contracted with social dominance falling to 0.419% despite improved sentiment scores (+0.115%). More critically, network activity deteriorated sharply with a 33.93% reduction in new addresses and over 10% decline in active addresses, signaling potential constraints in organic ecosystem growth.
The divergence between capital inflows and user engagement presents complex challenges for Avalanche’s development trajectory following its technical enhancements.