Altcoin

Interest in Avalanche NFTs rise, but what about AVAX?

Avalanche NFTs see rising volumes despite market uncertainty.

Published

11 months ago

January 25, 2024

Edited By: Saman Waris

Avalanche’s NFTs have managed to attract and retain users on its network.
Overall activity on Avalanche across various sectors waned.

The popularity of the Avalanche [AVAX] ecosystem has been fluctuating for quite some time. In the past, the ecosystem had gained popularity due to the rising interest in SocialFi dApps.

However, this hype was short-lived, which impacted not only the SocialFi dApps, but also the networks associated with it.

NFTs bring all the users to the yard

It was recently seen that NFTs were taking the lead in attracting users to the Avalanche network, with new and returning NFT users growing significantly over the last six months.

Notably, Dreamheadz and LoFi leopards were the two NFT collections that were driving the growth of Avalanche’s ecosystem.

The popularity of these collections will play a great role in the growth of Avalanche in the NFT sector going forward.

Source: AvaxNftStats

Not all good news

However, the Avalanche network witnessed a drastic decline in other areas. For instance, the interest in the Avalanche’s DeFi sector had waned significantly over the last few days.

This was showcased by the falling Total Value Locked (TVL).

Stablecoin volume and the volume of trades on the network had also fallen during this period, which indicated that there was waning interest in Avalanche.

So, even though Avalanche had made positive strides in the NFT sector, it was evident that there was still a lot of room for growth in other areas.

Source: DeFi Llama

Because of the lack of progress made by Avalanche in other sectors, the revenue generated by the protocol fell. In the last month, the revenue collected by the network fell by 94%.

Coupled with that, the number of daily active users on the network also fell by 10.7% during the same period.