Can Avalanche NFTs Save AVAX From Expected Selling Pressure?
- AVAX’s NFT ecosystem recorded growth in the past month.
- A possibility of a trend reversal for the altcoin cannot be ruled out.
Music NFTs gained the attention of many in early 2022 when Snoop Dogg released his collection on sound.xyz. Although music NFTs saw some growth at the end of last year, they have yet to gain traction in 2023.
In this regard, crypto market intelligence platform Messari recently reported on the state of music NFTs over the past year.
Music NFTs offer creators an alternative to the cap rates seen on traditional platforms.
While Web3 music platforms like @AudiusProjectand @catalogworks enables musicians to monetize their work, they have yet to gain mainstream traction. pic.twitter.com/x5x5BZV4u8
— Messari (@MessariCrypto) 11 February 2023
Interestingly, Avalanche [AVAX] featured NFT artist Mazey Moon in the artist spotlight. The artist had her latest collection published in recent times, in which she turned sunsets into music.
Mazey mentioned,
“I feel that even though we NFT artists are spread all over the world, we still want to get to know each other. I didn’t find it on any other blockchain.”
Blending his musical background with a passion for art, Mazey Moon discovered that NFTs were the perfect canvas to create unique audio/visual experiences using “color theory” 🎨🌈🎶
Get known @mmoonstudios lately #Avalanche The artist’s spotlight!
— Avalanche 🔺 (@avalancheavax) 10 February 2023
Read avalanche [AVAX] Price prediction 2023-24
Meanwhile, Santiment’s chart revealed that Avalanche’s NFT ecosystem recorded growth overall over the past 30 days. Total NFT trading numbers and USD trading volume were up, reflecting increased usage.
Source: Sentiment
NFT space is growing
On the other hand, AVAX Daily released Avalanche’s weekly highlights report, where it was mentioned that Crabada NFT took the top spot last week in terms of total NFT sales in the last seven days, followed by ThorFi.
🔺Avalanche Ecosystem Weekly Highlights🔺
Award winners$RELAY @relay chain$GRT @grafprotokoll$JGN @JGNDeFi$COMMUTE @pendle_fi
TVL winners$BAYMAX @baymaxfi$SPHRI @SpheriumFinance$MCB @muxprotocol
$ @emdx_io#AVAX #Avalanche #DEFI $AVAX pic.twitter.com/1v758dBVs9— AVAX Daily 🔺 (@AVAXDaily) 10 February 2023
Now, despite growth in the NFT ecosystem, AVAXits daily number of transactions was rejected.
Furthermore, AVAX’s Total Value Locked (TVL) and market value also went south, by 6% and 18% respectively.
The declining market cap was a result of the token’s negative price action over the past week; AVAX’s price had fallen by over 14%.
However, according to CoinMarketCap, at the time of writing, the coin was trading at $17.89.
The Avalanche’s development activity also slowed down, which was a worrying factor. The same remained true with the Binance funding rate, which reflected less demand for AVAX from the derivatives market.
Source: Sentiment
How much is 1.10.100 AVAXes worth today
Investors can still be happy
Nevertheless, CryptoQuant’s data revealed that AVAX’s stochastic was in an oversold position, which could give way to increased buying pressure.
What a coincidence! Indeed, a trend reversal appears to have begun AVAX‘s price increased slightly in the last 24 hours at press time.
After a decline, AVAX’s Money Flow Index (MFI) registered a small upturn and was heading towards the neutral mark.
The Exponential Moving Average (EMA) band revealed AVAX’s bullish edge in the market as the 20-day EMA remained above the 55-day EMA.
However, the MACD showed a bearish crossover. Furthermore, the coin’s Chaikin Money Flow (CMF) decreased, which may limit the price from going up in the short term.
Source: TradingView
