AVAX Open Interest Soars to $224 Million

The open interest for AVAX (Avalanche native currency) has increased steadily over the past month, which has accompanied the altcoin’s price.

As a consequence of this persistent ascent, the open interest has presently surged to levels observed in May 2022. This development has the potential to signal a substantial surge in price.

Currently, Coinglass data indicates that the open interest in AVAX has increased to $224 million. According to the website, the open interest increased by more than 10% over twenty-four hours, surpassing 10.04 million AVAX.

Binance controls approximately half of this open interest, or 4.48 million AVAX, valued at roughly $100 million.

This indicates that a significant proportion of the demand originates from the cryptocurrency exchange. Additionally, the 24-hour period witnessed a 9.94% surge in the overall open interest.

The second-largest open interest is 2.04 million Avalanche native currency worth $46.09 million, managed by the ByBit exchange. BingX ranks third with 1.24 million AVAX, valued at $27.59. Nonetheless, none of these exchanges accounted for the most significant daily increase.

The most substantial increase in open interest was observed on the Bitmex exchange, where it surged by 17.78%, totaling 55,340 Avalanche native currency with $1.53 million invested on the cryptocurrency exchange.

In one month, the aggregate open interest in the alternative coin increased by 170%, from $82.8 million on October 20 to $224 million on November 20.

When AVAX open interest was at its peak, the price was trading significantly higher, creating the potential for a rally exceeding $30.

The last time open interest exceeded $220 million, according to Coinglass data, was in May 2022, when the price was still above $50.

In addition, an examination of AVAX’s past performance reveals that when open interest has increased significantly, the price has tended to follow suit.

In August 2021, the open interest increased from $14.53 million to $123.5 million, causing the AVAX price to grow from $19.15 to $55.

Should the pattern above persist, the AVAX price could potentially level off at $30. The current open interest volume values the AVAX fair price at approximately $40, consistent with all historical performance.

Consequently, the altcoin may be trading significantly below its fair value.