Avalanche, one of the fastest growing blockchains in the DeFi world, has cemented itself as a leader in this field. Ergo, the equally rapid acceptance is not really surprising.
However, given the prevailing market conditions, the investor’s current reaction to Avalanche is worrying.
Avalanche is coming to Bitstamp
Today, Bitstamp added Avalanche to the exchange along with WTBC. Unfortunately, AVAX surprisingly did not respond as expected. While the wicks have peaked at $76 in the past 24 hours, it was trading back at $72 at the time of writing.
While the critical support at $69.5 is still under testing, AVAX is stuck in a downtrend wedge over the long term. This allows AVAX to remain consolidated below USD 80 until the end of March unless the altcoin is able to break out.
— Bitstamp (@Bitstamp) March 7, 2022
Usually a listing isn’t that big of a deal as there are hundreds of cryptocurrency exchanges around the world. However, in the case of AVAX, previous offerings had a significant impact on the price.
In December, two different crypto exchanges added AVAX to their list of tradable assets.
The world’s third largest crypto exchange, FTX, listed the alt on Dec. 11. FTX was followed by Kraken which listed AVAX on December 21.
At the time of listing, AVAX was up 7.11% on December 11 and rocketed another 8.67% when Kraken listed it.
However, since deposits and withdrawals for AVAX on Bitstamp won’t start until March 10, we might see some positive price action then.
Still, in addition to the lack of investor optimism, Avalanche also sees a lack of activity on its DeFi front. As total value on the chain has risen from $8.1 billion to $10.66 billion, unique daily depositors have gained momentum.
In November, the Avalanche Bridge regularly had more than 2,000 depositors. These numbers have since fallen to 283.
Subsequently, the total transaction volume also decreased from $430 million to $77 million in 4 months.
Given that extensive bearishness is keeping investors away from the crypto market, altcoins may need more than just a listing to trigger a recovery rally.