As Avalanche looks to beat the bears, will this help?
- Avalanche’s new contract deployments reached a six-month high.
- Stars Arena increased accessibility, even though a recent hack raised concerns.
Avalanche [AVAX], despite the crypto market’s current challenges, has been showing its commitment to progress by consistently developing and introducing new features to its protocol.
Realistic or not, here’s AVAX’s market cap in BTC’s terms
Contracts on the rise
This dedication was reflected in the increasing number of new contracts deployed on the Avalanche network, which reached a six-month high on 17 October.
New Contracts deployed on @avax C-Chain reach a six-month high.
Quite a bit happening on the red chain. pic.twitter.com/JtcJLN9UF5
— Emperor Osmo? (@Flowslikeosmo) October 17, 2023
The growth in contract deployment was significant because it suggested a higher level of activity and adoption of the Avalanche blockchain, which could positively impact its ecosystem.
Moreover, Stars Arena, which operates on Avalanche, was contributing heavily to the network’s vibrancy. Stars Arena, as described by Jay Sofue, the VP of marketing for Avalanche, simplified the user experience by allowing users to start without needing to fund with cryptocurrency.
This approach aimed to make the platform accessible to a broader audience, not just web3 users, and it empowered creators by charging a reasonable 7% fee.
While there have been notable achievements, it’s important to address recent challenges. Stars Arena recently faced a hack, resulting in a loss of nearly $3 million. Such incidents can have negative repercussions, affecting both the platform’s reputation and Avalanche’s overall performance.
Avalanche’s presence in the DeFi sector
Avalanche’s standing in the decentralized finance (DeFi) sector was marked by some mixed trends. On the one hand, the rise in new contracts and the success of Stars Arena highlighted positive aspects of the network.
However, the DEX volumes and TVL sector have experienced material declines.
DEX volumes represent the amount of trading activity on Avalanche, while TVL, or Total Value Locked, reflects the total value of assets staked in Avalanche’s DeFi protocols.
A decline in these metrics can be concerning because it may indicate reduced utilization and investor interest in the ecosystem.
Taking a closer look at AVAX, the native cryptocurrency of Avalanche, it was seen that its price fell to $9.327 in the last week. This price movement reflected the challenges that many cryptocurrencies have faced during periods of market volatility.
Additionally, the volume of AVAX trading decreased. Trading volume is a crucial metric in the cryptocurrency market, as it indicates the liquidity of a token. A significant drop in trading volume can result in a less liquid market, which may deter traders and investors.
Is your portfolio green? Check out the AVAX Profit Calculator
In terms of Development Activity, Avalanche experienced a decline, showing a slowdown in the implementation of new features and updates on the network.
This could potentially hinder the protocol’s growth and its ability to remain competitive in the dynamic blockchain landscape.