The apparent rise of AVAX, the engine that fuels the layer-1 blockchain protocol Avalanche, is sending waves through the crypto community. Boosted with another 5.5% spike on Friday, AVAX concludes the week with a close to 10% gain, powered by the hype around Stars Arena – a newly launched SocialFi on its blockchain. The rippling effect has AVAX leading the pack in the top 20 cryptocurrencies by market capitalization this week, with CoinGecko affirming a near 6% increase in the last 24 hours and an impressive 17% climb in seven days.
Currently floating close to $10.70 per token, AVAX seems to have successfully dashed past its 21 and 50-Day Moving Averages this week. Interestingly, one might posit that AVAX has been ascending since its break from a downturn in late September. An uptrend that was previously in action since July. The eyes of bullish backers are now set on revisiting the resistance threshold in the low $11s, where the late August high and 100DMA reside.
Behind the scenes, the unequivocal link between the surge in on-chain activities and the launch of Stars Arena – a SocialFi platform, is pushing Avalanche’s on-chain activity to new heights. Avalanche blockchain recorded a significant leap in daily transactions, soaring above 550,000, its highest since May.
Built on Avalanche blockchain, Stars Arena has joined the ranks of the top performing SocialFi platforms by Trade Value Locked (TVL), retaining a [disproportionate] TVL of $2.5 million, a stark contrast to the $30,000 recorded on its launch day. Despite a swift attack on its protocal’s users shortly after deployment, the platform continues to thrive.
In terms of AVAX’s future trajectory, it’s anticipated that if Stars Arena sustains the current level of interest and continues fueling on-chain activity, it could further fortify AVAX’s price stance. Should AVAX successfully maneuver past the resistance in the low $11s, a rapid advance towards the 200DMA at $13.5 is anticipated – a swift 25% leap from current positions.
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Source: Cryptonews
