Avax wrapped (Wavax) has seen an increase in the accumulation of portfolio on the avalanche blockchain, even if its price has dropped by more than 4% in the last 24 hours, Theie’s data show.
In total, 3,898 portfolios have added to their Wavax holdings today, which is twice the recent average of 1,600, according to data. An enveloped token is a token that represents a cryptocurrency from another blockchain or token standard and is worth the same as the original cryptocurrency. The wrapped token can be used on certain non-native blockchains for trading, loan and borrowing on the DEFI platforms and subsequently exchanged for the original cryptocurrency.
While a decline price often points out a lowering feeling, the increase in accumulation could suggest that some traders see long -term potential in Wavax. However, if this purchase activity results in price stability or a rebound remains to be seen.
Portfolio accumulation comes shortly after the major cryptocurrency exchange binance added Avx as an option of cashback for its recourse card product and after the Avalanche network saw technological progress at the end of last year with its avalanche9000 upgrade.
The avalanche ecosystem has also seen increasing integrations, including the expansion of the BlackRock Tokrock Fund.
Avax wrapped is a tokenized version of the Avax native part of avalanche, allowing wider compatibility on decentralized financing applications (DEFI).
The growing number of wallets holding Wavax may indicate that users are positioned for future deffi activity. The Avalanche DEFI ecosystem, which includes major protocols like Aave and Lido, has had a slight decrease in the total value locked in recent months. The trading volumes on the network have nevertheless increased, according to Defilma data.
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