Wrapped Avax (Wavax) has been seen to have a surge in wallet accumulation in the avalanche blockchain.
We have now added a total of 3,898 wallets to Wavax Holdings. It's twice as much as the recent average of 1,600. A wrapped token is a token representing a cryptocurrency from another blockchain or token standard, and has the same value as the original cryptocurrency. The wrapped tokens can be used on certain non-native blockchains to be used for trading, lending and borrowing on the Defli platform, and are later redeemed for the original cryptocurrency.
While price drops often indicate bearish feelings, an increase in accumulation may suggest that some traders are seeing long-term potential in Wavax. However, it remains to be seen whether this purchase activity will lead to price stability or rebound.
Wallet accumulation came shortly after major cryptocurrency exchange vinance added Avax as a cashback option for bi-bit card products, and the avalanche network saw technological advances with the upgrade of the Avalanche 9000.
The avalanche ecosystem is also seeing increased integrations, including the expansion of BlackRock's tokenized fund Buidl.
Lapped Avax is a tokenized version of Avalanche's native Avax coin, allowing for wider compatibility across distributed finance (DEFI) applications.
With the increasing number of wallets holding Wavax, it may indicate that users are positioned for future Defi activity. Avalanche's Defi Ecosystem, which includes key protocols like Aave and Lido, has slightly reduced the total value that has been locked over the past few months. Defillama data shows that trading volume on the network is growing steadily.
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