Wrapped Avax (Wavax) has seen an increase in the wallet’s accumulation on avalanche blockchain, even when the price dropped more than 4% over the last 24 hours, data from Thetie shows.
A total of 3,898 wallets added to their Wavax holdings today – almost twice the recent average of 1,600, the data shows. A wrapped token is a token that represents a cryptocurrency from another blockchain or token standard and is the same worth the same as the original cryptocurrency. The wrapped token can be used on certain non-native blockchains for trading, lending and borrowing on defi-platforms and later redeemed to the original cryptocurrency.
While a falling price often signalizes the Bearish mood, Uptick in accumulation could suggest that some dealers see long -term potential in Wavax. Whether this purchase activity is translated into price stability or a rebound, it is not yet to see.
The accumulation of the wallet comes shortly after greater cryptocurrency -exchange binance added Avax as a cashback option for its BYBT card product, and after Avalanche Network saw technological progress late last year with its Avalanche9000 upgrade.
The Avalanche ecosystem has also seen growing integrations, including the expansion of Blackrock’s tokenized Fond Buidl on it.
Wrapped Avax is a tokenized version of Avalanche’s original Avax coin, enabling wider compatibility across decentralized funding use (DEFI).
The growing number of wallets holding Wavax may indicate that users are placed for future defi activity. Avalanche’s defi -ecosystem, which includes larger protocols such as Aave and Lido, has seen a slight decrease in the total value locked in the last few months. Trade volumes on the network have nevertheless grown steadily, according to Defillama data.
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