In November, altcoins experienced explosive gains, outperforming Bitcoin and signaling the start of an “altcoin season”. The native token of Avalanche, AVAX, led the pack with a staggering surge in value.
Avalanche’s Native Token AVAX Takes the Lead
The news of JPMorgan and Apollo using the Avalanche network for real-world asset tokenization testing was a major driver behind AVAX’s success. AVAX saw a 97% increase in value, making it the top performer among large-cap digital assets.
The success of Avalanche extended beyond AVAX’s price surge. The transaction volumes on Avalanche’s blockchain reached $2 billion in a week, marking the highest level in a year. This spike in activity reflects the growing adoption and utilization of the platform.
Inflows into Avalanche have also been on the rise, with $79 million in net inflows recorded in Q3 and $56 million in Q4 through late November. These inflows demonstrate the revitalization of the Avalanche ecosystem and the increasing confidence from investors.
Notable Performances of Other Altcoins
Other altcoins also had notable performances in November. Helium (HNT), a popular internet-of-things communications protocol, experienced a 110% rally in its token price. Additionally, the non-fungible token (NFT) marketplace Blur’s token (BLUR) and the decentralized cross-chain liquidity protocol THORchain’s native crypto (RUNE) both doubled in value during the month.
Bitcoin and Ether’s Momentum Shift
Bitcoin, the largest cryptocurrency, recorded a 10% monthly gain, while Ether, the second-largest cryptocurrency, increased by 13%. However, the slower momentum of these large-cap cryptocurrencies led investors to rotate their profits into riskier areas of the market, such as altcoins, NFTs, and decentralized finance (DeFi) tokens.
The Rise of Altcoins and “Altcoin Season”
The wider rally in smaller cryptocurrencies and the ongoing outperformance of altcoins compared to Bitcoin suggests that we are in the midst of an “altcoin season,” where smaller cryptocurrencies are gaining more attention and generating significant returns for investors.
Overall, November was a month of explosive gains for altcoins, with AVAX leading the pack. The increasing transaction volumes, inflows, and adoption of Avalanche’s network highlight the growing importance of this platform within the crypto industry. Investors are diversifying their portfolios and seeking out opportunities beyond Bitcoin, with small-cap and niche cryptocurrencies.