Avalanche’s token AVAX has soared by over 115% in 30 days, reaching an annual peak near $23. This rapid rise can be explained in part by Avalanche’s strategic role in real-world assets (RWA), currently a dominant theme. At the same time, the number of transactions on Avalanche has exploded in recent days, but for what reasons?
Avalanche price doubles in 1 month
About $23 on Monday November 20, AVAX, the native token of the Avalanche ecosystem, reached its highest price of the entire year 2023. And you even have to go back as far as August 2022 to see the ecosystem’s cryptocurrency surpass this figure, although it remains a long way from its ATH of $145 reached in November 2021.
Even so, this rise remains particularly noteworthy, especially as it has been achieved in a relatively short space of time: in the space of 30 days, the AVAX price has climbed by over 115%.
One of the reasons for this is Avalanche’s strategic position in the world of real-world assets (RWAs), one of the main narratives of the moment. RWAs are indeed a small revolution insofar as they make it possible to represent real assets such as real estate or works of art on the blockchain. If you’d like to find out more about what is proving to be a turning point in the blockchain economy, we invite you to read our article dedicated to RWAs.
So why does the narrative of real world assets benefit Avalanche? Well, Avalanche has the particularity of offering scalable and programmable subnets to developers, so that they can tailor them to the use they intend to make of them.
In other words, Avalanche is the solution of choice for institutions and companies wishing to use blockchain in a simplified way, without having to set up their own blockchain.
And these subnets have recently been adopted by giants such as JPMorgan via its Onyx Digital Assets arm, which has notably enabled it to explore tokenization in collaboration with another giant, namely WisdomTree. A welcome adoption for Avalanche, which has seen the price of its AVAX token boosted by this news and by the adoption of its subnets by GameFi applications such as Dexalot and DFK.
The latter have seen more transactions pass through their network than through Avalanche’s C-Chain this month. But that was before the ASC-20 explosion.
Transactions explode thanks to ASC-20
Latest we’ve seen, the number of transactions in the Bitcoin mempool has virtually skyrocketed due to a fourth wave of BRC-20 registrations based on the Ordinals protocol. This massive increase in the number of transactions on Bitcoin, whether you like the idea or not, has also been replicated on other blockchains via the same process.
As far as Avalanche is concerned, its C-Chain has been swamped over the past few days with transactions triggered by ASC-20 tokens, which enable users to enter information in the call data of a transaction in order to store it on the blockchain at a lower cost than with the ERC-20 standard.
And these famous ASC-20s accounted for up to 96% of all transactions taking place on Avalanche’s C-Chain:
Avalanche now has its own ordinals called ASC-20s. A mint transaction costs ~90% less than the average c-chain transaction
In the last hour, ASC-20 mints were responsible for 96% of transactions with over 170k wallets minting ASC-20s https://t.co/4TSsMpxTQH pic.twitter.com/KdXC32K6HB
– Dan Smith (@smyyguy) November 19, 2023
In a blockchain transaction, call data refers to the information included when a user executes a specific function in a smart contract. It’s how we specify what action is to be performed, with what parameters, when interacting with a smart contract on the blockchain.
Also, at the time of writing, the rise in the number of transactions on Avalanche is largely attributable to the ASC-20 craze. And this, despite the fact that ASCs are not really of any practical use.
