As SocialFi makes a comeback, here’s how Avalanche stands to gain
- Avalanche’s Stars Arena saw a surge in overall TVL.
- Interest in Avalanche’s NFT sector declined.
SocailFi was one of the most popular sectors in the cryptocurrency space for quite some time. However, after its sudden spike in popularity, the hype around the sector waned.
Despite this, there was a surge in the TVL for Avalanche’s SocialFi network StarsArena. The increased TVL indicated that despite the general decline in enthusiasm for SocialFi, Stars Arena was managing to attract and retain significant value within its network.
This success could be attributed to a strong user community or effective marketing strategies specific to Stars Arena.
From a broader perspective, the positive performance of Stars Arena can contribute to the overall credibility and attractiveness of the Avalanche blockchain.
It showcases that even in a cooling market, certain projects within the Avalanche ecosystem are thriving, potentially drawing attention to the blockchain’s robust infrastructure and ecosystem support.
This success story may encourage developers and investors to explore opportunities within Avalanche, fostering continued growth and innovation on the platform.
Furthermore, as TVL is a key metric in DeFi, the surge in StarsArena’s TVL could also enhance Avalanche’s position within the broader DeFi landscape. It may attract more users and projects to consider Avalanche as a viable ecosystem for decentralized financial activities.
Round 2? pic.twitter.com/clSaxlEOro
— Emperor Osmo🧪 (@Flowslikeosmo) January 25, 2024
However, the NFT sector of the network didn’t witness the same level of popularity during this period.
The past week witnessed a 12.5% decline in sales volumes of Avalanche NFTs. This decrease can be attributed, in part, to the diminishing popularity of blue-chip NFTs within the ecosystem.
The downturn in NFT sales on Avalanche may be linked to a concurrent decline in social volume for the platform.
Additionally, the weighted sentiment surrounding the AVAX token witnessed a decrease, indicating that, at press time, negative sentiments around the network outnumbered the positive ones.
These factors collectively contributed to a less favorable market sentiment for Avalanche, potentially influencing NFT sales in the observed period.
How much are 1,10,100 AVAXs worth today
Furthermore, the price of AVAX was impacted by these factors, experiencing a decline of 4.69% over the past week. In contrast, despite the challenges faced, Avalanche exhibited a surge in development activity, a positive indicator for the protocol.
The increased development activity suggests ongoing efforts to enhance and innovate within the Avalanche ecosystem. This can potentially contribute to its long-term growth and sustainability.