Will Avalanche DEX’s Sustain Rally Bolster AVAX?

Avalanche-based DEX Trader Joe’s had a remarkable performance last year, data from Dune Analytics revealed. For instance, its trading volume in the month of Dec was the highest and has since maintained its momentum.

In the swap volume statistics, the pair GMX/WETH occupied the top spot and the USDC/WETH pairing comes in second.

The protocol’s trading volume per liquidity pool was then examined, and a fair number of transactions were found, which is proof of its strong liquidity.

In addition to its initial purpose as a typical Defi platform, the AMM that trades on the AVAX blockchain has launched other services including lending, leveraging, staking, farming, and other activities.

It has developed into a one-stop shop that tries to address concerns the Defi sector faces, including capital efficiency.

Trader Joe version 2, based on a novel Automated Market Maker [AMM] architecture, has reached a TVL of over $7 million.

The DEX also just released Liquidity Book, version 2 of its Automated Market Maker. It boasts that by enabling liquidity providers to collect trading fees within a particular price range, it hopes to increase its efficiency.

All these can act as a catalyst in the AVAX price action which dropped by a staggering 90%, leaving many investors scratching their heads.

The more transactions there are on the DEX, the more money flows into Avalanche. Overall, this might boost the price of AVAX and give holders some respite from the loss they have amassed over the past few months.

Avalanche [AVAX] Ecosystem Is Gaining Traction Amidst Price Fall

The token did post some recovery on 5 Jan. with the price crossing the $12 mark but has fallen over 7% to trade at $11.43 as per data provided by CoinMarketCap.

The 18th-ranked token with a market cap of $3.5 billion is down by 4% in the last 24 hours.

Although the pricing of the cryptocurrency market has been highly gloomy over the past year, on-chain advancements are still going strong. Avalanche expanded its incentives program on December 30 to encourage the creation of dApps on the Avalanche ecosystem.

December also saw the integration of Coinbase’s USDC which will bring more people into Avalanche and the crypto economy. 

The AVAX ecosystem has also forged many significant alliances with HoldStation, a provider of SocialFi wallets, and Odos Protocol, who established a DEX aggregator on Avalanche.

Lipika Deka: Lipika is a crypto-journalist at TWJ. A graduate in economics and finance, she has a keen interest in the political and socio-economic facets of blockchain technology and the cryptocurrency industry.