- Avalanche highlighted its readiness for an increase in lawsuits as self-custody gains popularity.
- Short-term AVAX demand is still showing signs of low stimulus
The DeFi space is heating up now that recent events have exposed cracks in the centralized finance segment of the cryptocurrency market. Networks that have DeFi-focused developments are ideally positioned to take advantage of this shift, especially in the long run. Avalanche is among them, and recent announcements highlight their readiness for this change.
File AVAX price prediction for 2023/2024
One of the latest Avalanche announcements revealed an update to Trader Joe’s design. The latter is a major decentralized exchange that runs natively on Avalanche. According to the announcements, the new changes aim to increase the efficiency of liquidity protocols and reduce price declines.
this day, @traderjoe_xyz has just launched its new AMM design with concentrated liquidity, aiming to provide better efficiency for LPs while minimizing slippage.
Trader Joe Liquidity Book aims to increase efficiency with fungible discrete containers and soaring prices.
— Avalancha 🔺 (@valangheavax) November 16, 2022
Avalanche also announced that Trader Joe’s order book will feature a dynamic fee update. This development reportedly aims to protect liquidity providers by reducing their exposure to liquidity impairment.
Because DeFi updates are perfectly synchronized
The move to self-custody due to liquidity issues on the exchanges is one of the biggest observations so far this month. It could usher in a major shift in the demand dynamics of the cryptocurrency market during the next big rally. Avalanche updates they are perfectly timed to remind investors that the network already has a functioning DeFi ecosystem.
However, is this memo enough to facilitate a healthy demand for the Avalanche Network? Avalanche’s volume metric is still near the lower monthly range, indicating a lack of healthy demand following last week’s slump. Similarly, while Avalanche’s market cap has bounced above the $4 billion mark, it’s still within the lower range.
The slight recovery in the market capitalization underlined the accumulation near the lower band. The lack of subsequent volumes is a sign that the demand has not yet arrived.
The fact that development activity appears low also makes it more difficult for investor sentiment to improve. In fact, the sentiment weighting has dropped slightly over the past 3 days, indicating that investors are still on the verge of falling back.
Source: feeling
The prevailing investor mood reflects AVAX price action. The latter has moved relatively sideways in recent days, highlighting the lack of substantial upside or downside momentum this week.
However, at press time, AVAX was trading at light first compared to last week’s lows.
Source: TradingView
What to expect from the long-term Avalanche DeFi space
Avalanche’s latest announcement underlined its readiness for higher demand in the DeFi space. We may not see increased demand for your DeFi solution any time soon.
However, this preparation could allow you to leverage DeFi for long-term growth.
This is a machine translation of our English version.
