The number of NFT trades on Avalanche increased in April, and it grabbed the attention of many users, but the daily activity on the network has declined. Generally, the NFT market is dominated by Solana, Ethereum, and Polygon, but Avalanche is trying to take on the position and compete with these NFT protocols.
According to recent data, the NFT trades have crossed over 2 million on the Avalanche network, which is five times greater than the number in March. Popular NFT collections like Doggerinos and Chikn have received increased interest on the network. Even the dApps operating on this network also witnessed a similar rise in numbers. As a result, the trading volume spiked up this month.
However, the number of daily active users has declined from 79K to less than 75K. On the other hand, the price of AVAX does not meet the investors’ expectations, which also experienced a substantial decline in the last two years along with the volume.
Will Avalanche’s NFTs help AVAX go up?
While the interest in NFT and dApps on the Avalanche network rises, there are certain challenges to overcome because the number of active users on the network decreases, which means the users are trying to explore other platforms, which can be a concern for the long term.
At the time of writing this post, the AVAX price is trading around $17.43, which is taking a support of around $16. In the last few months, it has been consolidating between $16 and $21; it will continue the sideways movement until it breaks the resistance.
Moreover, candlesticks are forming in the lower Bollinger Bands with RSI below 40, which suggests a bearish sentiment for the short term. Traders should be cautious while investing in Avalanche (AVAX), even for the long term. If it breaks the support, it could be long-term bearish.
Based on our algorithmic AVAX price prediction, the price will be around $35 at the end of 2023; it may consolidate later and trade within a range from $35 to $50. It will cross that level at the end of 2025.
AVAX’s price will cross the psychological mark of $100 in 2027, which will be strong support for the long term. Many new buyers will join at this level so that the price will cross $150 in 2030.