Significant capital inflows from Ethereum into the Avalanche (AVAX) network suggest growing investor interest, though conflicting on-chain and decentralized finance (DeFi) metrics point to potential hurdles for sustained price recovery.
Approximately $7 million in bridged netflow entered the Avalanche ecosystem within a 24-hour period, with a substantial $6.5 million originating directly from Ethereum. This movement indicates potential accumulation activity by large investors.
Supporting increased user engagement, AVAX recorded a surge in daily transactions and active addresses, reaching multi-month highs. This activity extends beyond mere speculation.
However, contrasting this positive on-chain data, AVAX’s DeFi activity shows notable declines. Trading volume on Avalanche decentralized exchanges (DEXs) plummeted to around $5 million, marking the lowest level observed in three months.
Further indicating reduced liquidity and trading demand, the total stablecoin supply circulating on the Avalanche network decreased to $1.1 billion.
The divergence between rising fundamental network usage and weakening DeFi metrics creates uncertainty regarding AVAX’s near-term price trajectory.