The Avalanche‘s [AVAX] network has had its greatest month of the year so far in April. The network has experienced significant growth in a number of areas, including daily active addresses, which have sharply increased since the beginning of April.
Throughout the months of January through March, Avalanche’s daily active addresses stayed below the 45,000 mark. Yet the network expanded rapidly, particularly in the last three weeks, when the number of daily active addresses exceeded 80,000.
However, what is the cause of this rapid expansion? A review of Avalanche’s most recent reports reveals that the exponential growth of IP addresses may be due to aggressive subnet deployment.
In turn, this has increased the network’s utility, resulting in increased user engagement. Avalanche subnets have attracted the attention of gaming-related initiatives in particular.
On April 18, the network announced that gaming DAO MeritCircle.io is presently developing a subnet for its Beam network. The latter is currently working on WEB3 game development.
This development positions Avalanche to take advantage of growth potential in the quick-paced WEB3 gaming industry.
The rising demand for Avalanche subnets further supports the network’s strengthening prospects. As a result, the network has seen an increase in development activities. At the time of publication, Avalanche’s development activity was at its peak in the previous four weeks.
AVAX Dips Sharply After Impressive Bullish Performance
AVAX noticed a liquidity boost due to the increase in daily active addresses during the previous three weeks. Because of this, its price has rallied 28% month over month and reached a high of $21.57.
However, it experienced a significant selloff in the previous twenty-four hours, which drove its price to $19.51 at press time.
AVAX’s sell pressure is unsurprising in light of its previous strong rally, which drove it into the overbought zone.
The price decline occurred after a significant decline in volume over the previous twenty-four hours.
This may indicate buyer exhaustion, which paved the way for the bears to take control, fueled by robust profit-taking.
Despite the bearish outcome, AVAX’s sentiment index remained elevated. This indicates that AVAX investors remain optimistic about the company’s prospects. This is because the expansion of subnets and network demand sets the groundwork for future growth.