Wrapped AVAX (WAVAX) has experienced a notable surge in wallet accumulation on the Avalanche blockchain, despite a recent 4% price decline over the last 24 hours, according to on-chain analytics from TheTie.
On the day in question, 3,898 new wallets added WAVAX to their holdings, nearly doubling the typical daily average of 1,600. Wrapped tokens like WAVAX are designed to mirror the value of their native counterpart while making them compatible with non-native blockchains, allowing users to trade, lend, and borrow on decentralized finance (DeFi) platforms, with the option to redeem them for the original asset.
While a price decline is usually seen as a bearish indicator, the increased wallet activity suggests that some traders might be positioning themselves for future growth. However, it remains uncertain whether this accumulation will lead to price stabilization or a potential rebound in the near term.
The rise in WAVAX accumulation coincides with recent developments, such as Bybit’s decision to add AVAX as a cashback option for its Bybit Card, as well as the implementation of the Avalanche9000 upgrade, which enhanced the network’s technical capabilities. Furthermore, the Avalanche ecosystem has been expanding its integrations, with BlackRock’s tokenized fund BUIDL now active on the platform.
As a tokenized version of AVAX, WAVAX allows for easier integration with various DeFi applications. The growing number of wallets holding WAVAX may indicate increasing interest in Avalanche’s DeFi space, which has seen a slight dip in total value locked recently, though trading volumes continue to climb according to data from DeFiLlama.
