Avalanche Open Interest Soars to Record High
Avalanche’s native token AVAX has experienced a significant surge in value, propelling it into the top 10 tokens by market cap. This surge was not unexpected, as activity on the Avalanche network had been increasing. Alongside the price surge, the open interest has also skyrocketed, reaching an all-time high.
Avalanche Open Interest Hits $413 Million
On Tuesday, the Avalanche open interest reached its highest level since its launch, coinciding with AVAX’s rise to $40. The open interest climbed continuously for over a month and peaked at $413 million on December 12. Throughout December, it has consistently reached new daily highs.
The open interest initially hovered around $70 million in October but saw a noticeable change in November as traders began taking positions in AVAX. Between November and December, the open interest surged by over 400%. On Tuesday alone, it grew by 19%, reaching a total of 11.43 million AVAX across all exchanges.
Binance and ByBit Dominate the Open Interest
Out of the total open interest, 73% is contributed by Binance and ByBit. Binance holds 44% of the total OI at $184 million (4.54 million AVAX), while ByBit accounts for 28.8% with $119.67 million (2.95 million AVAX). BingX, OKX, and Bitget complete the top 5 with $50.37 million, $43.7 million, and $41.8 million respectively.
Rising Open Interest Bullish for AVAX Price
Historical data shows that when AVAX’s open interest rises, its price tends to follow suit. This was evident in 2021 and 2022 when the altcoin’s price exceeded $100 before experiencing a crash. If the Avalanche open interest continues to climb, it is expected that AVAX will also see further growth. Surpassing an OI of $500 million could push the altcoin above the $50 level once again. However, reaching $100 may take until 2024.
Hot Take: Avalanche’s Open Interest Surge Signals Bullish Future
Avalanche’s AVAX token has made significant strides in both price and market cap, with its open interest reaching record highs. This surge in open interest indicates growing investor confidence and suggests that AVAX’s upward momentum may continue. With dominant exchanges like Binance and ByBit contributing to the majority of the open interest, it’s clear that institutional players are taking notice of Avalanche’s potential.
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