Avalanche (AVAX) Trading Volume Surges with Avalanche9000 Debut

• Avalanche has implemented a major upgrade on the Fuji testnet.
• AVAX price remains in the spotlight amid market selloff.

Avalanche (AVAX), currently trading as the 11th-largest cryptocurrency by market capitalization, saw its price climb to $42, following a 15.5% weekly rally. The trading volume and Open Interest also rose to record highs after announcing the Avalanche9000 upgrade. The increased activity on the AVAX blockchain suggests an imminent rally for the coin in the next few days.

Avalanche9000 Debut on Fuji Testnet

On Monday, Avalanche announced the launch of the Avalanche9000 network upgrade on the Fuji testnet, with its mainnet launch expected in the coming months. With features like the technical Etna Upgrade, ACP-77, ACP-125, and more, Avalanche9000 will help to streamline customization and improve maintenance. 

Avalanche9000 is now live on Fuji Testnet with up to $40m in grants on Retro9000.

What does this mean for you? pic.twitter.com/fTsmNQNuXD

— Avalanche9000 (@avax) November 25, 2024

Additionally, the upgrade will reduce deployment costs by 99.9%, making launching Layer-1 (L1) blockchains more financially viable. Developers benefit as the upgrade unlocks over $40 million in retroactive rewards. Avalanche9000 will allow for collective interoperability and the creation of network effects among Avalanche L1 blockchains connected via Interchain Messaging (ICM).

Over 500 L1s have developed on testnet and mainnet, as Avalanche9000 reduces the entrance barrier and enables purpose-driven blockchains at scale. These new L1s encompass community-run gaming, payment solutions for small enterprises, and institutional research, with further expansion into other frontiers.

The upgrade announcement has contributed to a recent increase in trader interest and liquidity in the Avalanche chain. According to Sentiment’s data, AVAX’s daily trading volume increased from $1.4 billion on Sunday to $2.22 billion on Tuesday, the highest level since March.

Further supporting the bullish outlook is Avalanche’s Open Interest (OI). 

Coinglass data reveal that futures OI in AVAX at exchanges increased from $355.67 million on Thursday to $525.41 million on Monday. This is the highest recorded level since mid-March.   

An increasing OI signals fresh purchases and new money entering the market, indicating an impending price surge for AVAX.

Avalanche (AVAX) Price Targets

Although strong backing remains crucial for AVAX’s upward trajectory, analysts claim the token could easily surge past $50. At the time of writing, the coin is down by 8.49% to $41.25.

Despite these current market conditions, AVAX’s strong technical signals fuel the analysts’ optimistic sentiment on AVAX. 

As CNF reported, technical analysis for the price of Avalanche indicates a strong bullish momentum. The Moving Average Convergence/Divergence (MACD) indicator has also validated the bullish sentiments.

Analysts believe AVAX will continue to move higher if it breaks through key horizontal resistance areas. A break out above strong resistance at $37 could boost its value to the $40 zone. With sustained momentum, AVAX could push toward the $50 price level. 

Moreover, Avalanche’s strong position in the Decentralized Finance (DeFi) sector gives it a good chance of growing by 2x to 3x in 2025. 

Partnerships with big organizations, like BlackRock and Visa, demonstrate its commitment to real-world adoption. With its expanding use cases and solid technical signals, Avalanche is on track for sustained growth.