During the fourth quarter of 2023, Avalanche
(AVAX) had a surge, recording enormous gains in
terms of institutional inflow and acceptance,
which revolved on tokenization drive and
expanded alliances.
Along with the overall market, the token has
witnessed a decline of 18% this year. This is owing
to the fact that leading assets such as Bitcoin
(BTC) and Ethereum (ETH) have recently
,.
experienced market corrections as a result of the
impact of huge liquidations.
During the month of December, AVAX experienced
a dominating rise of over 138%, making it a focal
point for traders. This was due to the fact that
institutional investors witnessed bullish sentiment
becoming more stable around the token.
As a result of AVAX's expansion, the company's
market capitalization increased to over $14.9
billion, which was in contrast to the general market
decline that was occurring at the time. For the
asset, the previous year was noteworthy since it
was able to erase losses that were incurred during
the previous bear window, which was caused by
macroeconomic causes and industrial
bankruptcies.
Momentum tanks of the AVAX
The growth of the coin was noted by Cryptonews
at the time, as its growth from the beginning of the
year to the present increased as a result of
tokenization activities.
AVAX has experienced a year-to-date gain of
107.18%, which can be attributed to increasing
activity and recent partnerships aiming at
tokenization. This growth has resulted in a 75.05%
increase from November 2022, which was a few
days after the FTX implosion.
This year, AVAX has experienced a decline of
18.13 percent as of the time of publication and
5.91 percent in the most recent twenty-four hours;
nevertheless, its trading volumes have increased
by 29.63 percent, reaching $737 million. This asset
is currently trading at $32.53, placing it eighth in
terms of market capitalization, and the community
is anticipating additional inflows of capital.
Despite the slowdown in momentum, Avalanche
has maintained a monthly rise of twenty percent
from the previous year.
However, despite the fact that the market finished
the previous year with a solid performance, the
anticipated inflows this year have been stifled, at
least in the first week, as a result of a significant
sell-off. The price of Bitcoin dropped by more than
ten percent on January 3, wiping out almost all of
the gains that had been recorded in the first two
days of the yea
ETF in the epicenter of both the surge and the sell-
off
Traders were anticipating the approval of a spot
Bitcoin exchange-traded fund (ETF) in the United
States by the Securities and Exchange
Commission (SEC), which has continuously denied
previous applications citing concerns about
market manipulation. As a result, the price of the
market leader increased.
An approval of an exchange-traded fund (ETF) will
open up a new window for institutional investors
to enter the market, which will be the beginning of
a new market cycle. According to the forecasts of
a number of analysts, this may bring trillions of
dollars into the market.
Matrixport, a cryptocurrency service firm that is
optimistic on an exchange-traded fund (ETF),
produceda study that stated that all ETFs could
be rejected in January, which caused the market to
experience a slowdown.
