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Data suggests Avalanche’s (AVAX) rally was a buy the rumor, sell the news event

Published 01/19/2023, 01:00 PM
Updated 01/19/2023, 02:40 PM
© Reuters.

Avalanche (AVAX) came into the spotlight early at the beginning of 2023 by adding its blockchain support to Amazon (NASDAQ:AMZN) Web Services (AWS) cloud. However, empirical and on-chain analysis suggests that Avalanche’s price surge is likely due to a broader cryptocurrency market pump which will likely end with the rest of the market.

While integration with the world’s largest blockchain service is a positive step for Avalanche, the hype around its implications might be exaggerated. The evidence lies in a similar move that Avalanche’s team made in December 2022.

Avalanche validator count. Source: Avax.network
Gas used on Avalanche C-chain and DeFi Kingdoms subnet. Source: Avax.network
Avalanche perpetual swap funding rate. Source: Coinglass
AVAX inflow and outflow from crypto exchanges. Source: Nansen
AVAX/USD daily price chart. Source: TradingView
AVAX/BTC daily price chart. Source: TradingView

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