Avalanche layer 1 blockchain hit a significant milestone last weekend, according to the data compiled by IntoTheBlock.
Currently, the network has amassed a balance across more than six million addresses. Such a trend suggested an increased network activity as the market continued to recover from a minor correction. Further data suggest that the number of transactions on the Avalanche blockchain hit a new all-time high of 6.35 million on November 22nd.
AVAX Network Activity Increases, But Sell-Off Concerns Loom
ITB’s data revealed that transaction size within the range of $0.00 – $1.00 surged by an astonishing 3156.83%. This was followed by the $1 million – $10 million cohort that saw a 233.33% increase during the same period. Transaction size within the ranges of $1k – $10k and $100k – $1 million was up by 110% each, while that of $10 – $100 surged by 81.51%.
The transaction size group of $1.00 – $10.00 is the only one to have registered a decline over the past month with a negative value of 48.21%. The transaction volume also spiked to more than 21 million AVAX this week, reaching levels not seen since May 2022. In terms of USD, the figure surged to $460.33 million
The on-chain activity comes amidst AVAX’s rally alongside the crypto market. The token was up by 110% over the past month alone and currently exchanged hands at $20.82.
However, Avalanche has an upcoming token unlock event scheduled for November 24, during which approximately $213.35 million worth of AVAX tokens are poised to be unlocked, with 9.54 million AVAX tokens constituting 2.68% of the circulating supply of layer 1 tokens.
These unlocked tokens will be allocated to Strategic Partners, Founders, and Team members and distributed through community airdrops. The largest share, totaling 4.5 million AVAX valued at $100.62 million, is earmarked for the team.
Higher AVAX reserves on exchanges generally point to a higher selling pressure on the token, which could drive its price lower.
$10M Boost for AVAX Ecosystem
The total value locked on Avalanche is significantly below the 2022 high, but the figure appears to be slowly recovering this month.
Furthermore, the ecosystem got a major boost recently from its developer and accelerator, Colony Lab, which announced a $10 million investment aimed at fostering the sustained expansion of the AVAX network.
The company has acquired over 500,000 AVAX tokens, valued at $8 million in recent months. These funds will be directed towards establishing a validators program designed to benefit AVAX holders.
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