Wrapped AVAX Sees Growing Interest in Long-Term Holding Amid Bybit’s Cashback Promotion

The recent onchain data from TheTie reveals that nearly 4,000 wallets have added ‘WAVAX holdings’ in the past day, which is 1.8 times the recent average of 1,600 wallets.

This trend may suggest that investors are confident in the token’s long-term potential despite its current market weakness, with Wrapped AVAX (WAVAX) experiencing a 4.5% drop in price over the past 24 hours.

Growing Adoption and Accumulation

The surge in wallet accumulation comes on the heels of several significant developments in the Avalanche ecosystem. Major cryptocurrency exchange ‘Binance‘ recently added AVAX as a cashback option for its Bybit Card product, while the Avalanche network underwent technological advancements with its Avalanche9000 upgrade late last year.

Furthermore, the Avalanche ecosystem has seen growing integrations, including the expansion of ‘BlackRock‘s tokenized fund BUIDL’ onto it. Wrapped AVAX is a tokenized version of Avalanche’s native AVAX coin, enabling broader compatibility across decentralized finance (DeFi) applications.

Increased DeFi Activity

The growing number of wallets holding WAVAX may indicate that users are positioning themselves for future DeFi activity on the Avalanche network. Despite a slight decline in total value locked over the last few months, trading volumes on the network have been steadily growing, according to DeFiLlama data.

While it remains to be seen whether this buying activity will translate into price stability or a rebound, the uptick in accumulation suggests that some traders are optimistic about WAVAX’s long-term potential.