Despite a significant surge in non-fungible token (NFT) activity, Avalanche’s price saw a dip. The TVL decreased by 3.26% ($50 million outflow), while DEX volumes dropped from $216 million to $130 million, highlighting investor cautiousness. 109% transaction increase on the platform was attributed to NFTs, with OpenSea being the main driver of this activity. Despite the rise in engagement, AVAX’s price remained stagnant at $23.66 after a slight drop (1.13%). This trend suggests that while NFT-driven growth is robust, it hasn’t yet translated into sustained price increase, possibly due to concerns about liquidity. 90% of recent transactions linked to OpenSea, an NFT marketplace, according to ETHNews. This aligns with broader sector trends, with NFT application posting a 78% growth over the past month. Further analysis suggests that continued growth in NFTs could potentially offset the outflows and bring AVAX’s price back to its previous level. While user activity climbed on Avalanche, total value locked (TVL) dropped by 3.26% to $1.47 billion. Around $50 million was withdrawn from protocols, indicating profit-taking or a loss of confidence in the market. Meanwhile, decentralized exchange (DEX) volumes also decreased. This suggests traders remain cautious despite increasing activity. For AVAX to rebound, sustained NFT growth must offset outflows, converting user engagement into lasting value.