- Avalanche’s SocialFi sector showed promise with the rapid growth of StarsArena.
- Despite this success, overall Avalanche activity declined, which impacted revenue as well.
SocialFi platforms are making waves in the crypto world, and Friends.tech has emerged as a standout. With a growing user base, rising TVL, and increased fees, Friends.tech showcases the potential of SocialFi. However, this popularity wasn’t limited to Friends.tech alone.
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Getting social
Recent data indicated that the SocialFi space on the Avalanche [AVAX] network was also making significant progress. One notable player in this arena was StarsArena, a SocialFi dApp on the Avalanche protocol.
According to data from Token Terminal, it experienced a remarkable surge in activity, making it the fastest-growing application on Avalanche in the past 24 hours.
SocialFi is heating up on @avax 🔺@starsarenacom was the fastest-growing application on Avalanche over the past 24 hours. pic.twitter.com/eS8WTwPein
— Emperor Osmo🧪 (@Flowslikeosmo) October 1, 2023
StarsArena’s popularity was a clear indicator of the potential for growth in the Avalanche ecosystem, and it highlighted the allure of SocialFi platforms. But it’s not the only success story on Avalanche.
Trader Joe, a prominent DEX on the protocol, also saw its trading volume increase by 24.14% in the past week, underlining the positive momentum in this space.
Despite these achievements, the overall activity on Avalanche witnessed a significant drop recently. Artemis’ data revealed a substantial decline in daily active users and their associated transactions.
This decline has also affected Total Value Locked (TVL) and DEX volumes on the platform, posing potential challenges for Avalanche’s continued growth.
Source: Artemis
Not all roses and sunshine
This decline in activity had a direct impact on the revenue generated by the Avalanche protocol, which fell by a substantial 46.3% over the last month. Such a sharp decrease in revenue raised concerns about the protocol’s sustainability and long-term viability.
Source: Token Terminal
However, it was not all bleak for AVAX, the native token of the Avalanche platform. At present, AVAX was trading at $9.514, and its trading volume experienced a significant uptick in recent days. This could signal a renewed interest in the protocol and its native token.
Source: Santiment
Realistic or not, here’s AVAX’s market cap in BTC’s terms
Furthermore, there’s a potential catalyst on the horizon that could boost Avalanche’s profile. Google Cloud recently announced its support for Avalanche blockchains within its BigQuery analytics service.
This integration with a tech giant like Google could provide significant exposure and credibility, potentially attracting more users and developers to the platform.
