Wrapped AVAX (WAVAX) has experienced a notable rise in wallet accumulation on the Avalanche blockchain, despite a more than 4% decline in its price over the past 24 hours, according to on-chain data from TheTie.
A total of 3,898 wallets added WAVAX to their holdings today, nearly double the recent average of 1,600, highlighting a significant uptick in activity. Wrapped tokens, like WAVAX, represent cryptocurrencies from different blockchains but maintain the same value as the original asset. These tokens enable cross-chain usage, allowing them to be traded, lent, or borrowed on decentralized finance (DeFi) platforms, with the option to redeem them for the original cryptocurrency.
Despite a price drop that might usually signal bearish sentiment, the surge in accumulation could suggest some traders are eyeing the long-term potential of WAVAX. However, it remains to be seen if this increased activity leads to price stabilization or a potential rebound.
This wallet accumulation follows recent developments such as the addition of AVAX as a cashback option for Bybit Card holders and the Avalanche network’s technological advancements, including the Avalanche9000 upgrade. Moreover, the Avalanche ecosystem continues to grow with integrations, such as BlackRock’s tokenized fund BUIDL expanding onto it.
Wrapped AVAX serves as a tokenized version of the native AVAX coin, facilitating broader use across DeFi applications. The increase in WAVAX wallets may point to a larger number of users preparing for future DeFi activities. Although Avalanche’s DeFi ecosystem, which includes protocols like Aave and Lido, has seen a slight dip in total value locked, trading volumes on the network have been steadily increasing, according to DeFiLlama data.
