Avalanche (AVAX) is in the spotlight, attracting interest from digital asset users and investors

After several weeks of calm, Avalanche is seeing impressive surges in on-chain activities, as reported by today's data.

Avalanche has been a hot topic in the crypto sphere, with digital asset users and investors showing interest in the token as its latest performance sparks potential market rally discussions.

After several weeks of calm, May 8 saw a flurry of on-chain activity on Avalanche, with an incredible surge in activity across the ecosystem, as highlighted by Nansen's metrics.

Daily active addresses rose substantially on the Avalanche network, increasing by more than 280k today alone. This increase indicates a surging user engagement as investors increasingly invest in the platform, an indicator of rising confidence in the market. If this trend continues to build, it could strengthen AVAX's momentum to push the upside.

This is also evident in the transactional activity on the network. Today, the network registered an increase of 700k transactions. This level of high transaction processing showcases Avalanche's key edge over rivals - its capability to process huge transaction volumes rapidly and at affordable costs.

Besides this transaction increase, the blockchain's DeFi sector is also witnessing a restored interest. According to metrics from DefiLlama, the TVL in Avalanche-based DeFi applications currently stands at $1.44 billion, an increase of 10.15% in the last 24 hours and also a rise of 8.25% over the past week. This shows a surge in the usage of decentralized applications operating on top of the Avalanche blockchain.

This on-chain activity appears to be contributing to AVAX's price momentum. The asset has maintained impressive uptrend over several weeks, with its price has been up 9.9% and 44.6% over the past week and a month ago, respectively. Today, the token recorded a 12.2% price jump, currently placing its value at $23.42. Furthermore, its trading volume rose by 91.40%, indicating a recent increase in user participation in the market.

This increase shows that more liquidity moves into the Avalanche network, a strong indicator of user trust and the network's adoption. This strong upturn momentum has put Avalanche back as one of the high-performing cryptocurrencies in the market currently.

AVAX is currently in the formation of a falling wedge pattern, indicating that the asset is preparing to see a major breakout after an extended downtrend. Precisely, this pattern suggests that a downward movement is beginning to lose strength and that buyers are beginning to move into the market.

The growing on-chain activities support the notion of AVAX's continued growth, with prices likely to break the resistance levels of $23.673 and $24.486 in the coming days.