The post Avalanche TVL soars back above $1B as AVAX bulls face resistance appeared on BitcoinEthereumNews.com.

Bullish activity breathes more life into Avalanche TVL and stablecoin market cap. Can AVAX hold on to recent gains as sell pressure gradually creeps back in? The Avalanche [AVAX] ecosystem has been experiencing a resurgence of activity as the market enters recovery mode. On-chain data revealed significant changes in some of Avalanche’s metrics, especially the total value locked (TVL). Avalanche’s TVL is a long way off from its historic high. It peaked at $11.49 billion in December, 2021, but the network experienced heavy outflows during crypto winter. The TVL dipped below $500 million in September last year and only managed to push back above $1 billion this week. Source: DeFilLlama Avalanche had a $1.07 billion TVL at the time of writing. While this is a noteworthy recovery, it still pales in comparison to the historic highs. We also observed significant recovery in the network’s stablecoin market cap to a $2.31 billion local high. The network’s stablecoin market cap hit a low of $536.96 million in October 2023, which means it is now up by over 300%. But just like the TVL, Avalanche stablecoin market cap is currently at a fraction of its $4.67 billion peak in 2022. Can the TVL and stablecoin market cap recovery support AVAX upside? Stablecoin growth and TVL are vital measures of a network’s growth and liquidity. They facilitate DeFi ecosystem growth so, technically this could signal more organic demand for AVAX moving forward. AVAX has been on a macro bearish trend since March, which seems to have leveled out in August. AVAX has so far rallied by almost 50% from its September lows. The cryptocurrency recently peaked at $30.85, but had a $29.33 press time price after a slight pullback in the last 24 hours. Source: TradingView AVAX bulls are starting to experience resistance, suggesting…

---

Filed under: News - @ September 29, 2024 10:05 am