THE open interest for AVAX has seen a steady rise over the past month, bringing the price of altcoin with. The result of this continued rise is the fact that open interest has now reached May 2022 levels, a development that could lead to a massive rise in price.
AVAX Open Interest Increases to $224 Million
According to Coinglass data, AVAX’s open interest has now climbed to $224 million. The website shows that there was an increase of more than 10% in open interest over a 24-hour period, which brought the total open interest above 10.04 million AVAX.
Binance actually represents almost half of this total open stake, 4.48 million AVAX, worth just over $100 million. This suggests that a good portion of the demand is coming from the crypto exchange. Total open interest also saw a 9.94% increase over a 24-hour period.
ByBit Exchange represents the second largest open stake with 2.04 million AVAX worth $46.09 million. BingX comes in third with 1.24 million AVAX worth $27.59. But none of these exchanges explains the largest increase of the last day.
The largest increase in open positions was recorded on the Bitmex Exchange as it increased by 17.78% to bring the crypto exchange’s total open interest to 55,340 AVAX with $1.53 million. In total, the open interest in altcoin rose from $82.8 million on October 20 to $224 million on November 20, meaning open interest increased by 170% in one month.
Token price holds above $22 | Source: AVAXUSD on Tradingview.com
Can the price exceed $30?
The last time AVAX open interest was this high, the price was trading much higher, opening up the possibility of a rally above $30. As Coinglass data shows, the last time the open interest crossed $220 million in May 2022, when the price was still trading above $50.
Furthermore, if we look at the historical performance of AVAX, it shows that every time the open interest increased rapidly, the price tends to follow suit. This was the case in August 2021, when open interest increased from $14.53 million to $123.5 million, and the AVAX price increased accordingly, from $19.15 to $55.
If the same trend were to occur here, then $30 could only be a starting point for AVAX price. After all the historical performance, the current open interest volume puts the fair price of AVAX at around $40, which means altcoin could trade well below its fair value.