- Avalanche network observed a sharp decline in activity on the social front.
- AVAX’s price remains unaffected, protocol continued to make progress in the DeFi space.
Over the past quarter, the Avalanche[AVAX] protocol experienced significant growth in terms of activity. This growth was driven by the success of several dApps operating on the platform, with TraderJoe being one of the key contributors to this growth.
Realistic or not, here’s AVAX’s market cap in BTC’s terms
Is Avalanche’s popularity declining?
However, in recent weeks, the social activity around AVAX has declined. According to data provided by AVAX Daily, the weekly social mentions for AVAX have fallen by a large 309.7%. Additionally, the social engagements for the protocol have also declined by 3.98% during the same period.
?Avalanche Weekly Social Signals?
Most Influential Projects@DrProfitCrypto@Axel_bitblaze69@Flowslikeosmo@CryptoMichNL
Influencers of the Week@Monsterra_P2E@ShidoGlobal@chainlink@AvalaunchApp
Source: @LunarCrush#AVAX $AVAX #Avalanche pic.twitter.com/KOIhjGiF8k
— AVAX Daily ? (@AVAXDaily) July 15, 2023
Furthermore, the social outlook towards the Avalanche protocol remained negative over the last week. This was showcased by Santiment’s data, which indicated that the weighted sentiment for Avalanche was overwhelmingly negative, implying that the negative comments for Avax outweighed the positive ones at press time.
Source: Santiment
AVAX’s price continues to rise
The declining progress of Avalanche on the social front, however, did not impede AVAX’s growth in terms of price. Since testing $0.406 support level on 10 June, the price of the AVAX token grew by 45.82% and was trading at $14.64 at the time of writing. Over the last few weeks, the price of AVAX has spotted multiple high highs and high lows and has managed to establish a bullish trend.
The RSI indicator was at 54.91, implying that the momentum was with the buyers. The CMF at 0.14 painted a positive picture as well, implying that buying pressure was prevailing for AVAX.
Source: Trading View
One of the ways in which Avalanche could continue to sustain AVAX’s growth would be the burning of AVAX tokens. According to data provided by Avalanche Explorer, the protocol burned a total of 2.5M tokens at press time.
When a transaction happens on the Avalanche network, it burns the transaction fee, sending it to an irretrievable address. This burning mechanism has several purposes, such as reducing inflation and enhancing the scarcity of AVAX tokens as time progresses.
? Recent 2.5M Burn Milestone by Avalanche: Unveiling the Dynamics of Burned Fees ?
TL;DR
• What are burned fees
• When burned fees occur
• How Avascan provides insights into burned fees
• Metrics: total burned fees and AVG burned fees
• …more#Avalanche #AVAX pic.twitter.com/5Bwy4qJ7zc— Avascan ? The Avalanche Explorer (@AvascanExplorer) July 14, 2023
Is your portfolio green? Check out the Avalanche Profit Calculator
Coming to the state of the protocol, it was observed that the Avalanche network was doing relatively well, especially in the DeFi sector.
Artemis’ data indicated that the TVL of the protocol grew materially over the last few weeks. One of the largest contributors to the growing TVL on the Avalanche network was the increasing DEX volumes on Avalanche which also surged in tandem with Avalanche’s TVL.
Source: Artemis
