AVAX's SocialFi Frenzy: Could It Reach $20 Soon?

AVAX Enters the SocialFi Craze – Could Its Price Reach $20 Soon?

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Avalanche (AVAX) is a blockchain platform that aims to provide fast and secure decentralized applications (dApps). It utilizes a consensus protocol called Avalanche consensus, which enables high transaction throughput and low fees. AVAX has gained considerable momentum recently in terms of its price. As of my knowledge cutoff in September 2021, AVAX traded around $30 per token. The current price of AVAX is around $9.75 USD per coin, and it is noted that Avalanche is 93.33% below its all-time high of $146.22 USD. In light of AVAX's participation in the SocialFi trend, there is potential for its price to surge to $20 in the near future. This bullish sentiment is driven by factors such as increased interest in SocialFi platforms like Stars Arena, as well as influencers endorsing AVAX and contributing to heightened network activity.The current price Is The world of cryptocurrency is a perpetual rollercoaster, forever keeping investors on their toes. In recent days, Avalanche (AVAX) has stolen the spotlight with an astonishing 10% surge in its price. What's causing this meteoric rise? The answer lies in the exciting emergence of SocialFi, particularly the Stars Arena platform. Let's dive into the details and see if AVAX's newfound momentum can sustain a bullish rally.

Stars Arena: A Game Changer in the SocialFi Space

On September 27, Stars Arena, a formidable rival to Friend.Tech in the SocialFi landscape, made its debut on the Avalanche blockchain. The impact was nothing short of remarkable, as key on-chain indicators immediately registered a significant uptick in AVAX network engagement.

Stars Arena Debut on Avalanche

The Stars Arena launch sent ripples through the crypto sphere. Its entry into the SocialFi ecosystem on Avalanche marked a significant turning point. But what makes it so special?

Impact on AVAX Network

The Stars Arena effect didn't just stay confined to the platform. AVAX-denominated transactions saw a remarkable 113% increase since September 27, reaching a peak of 376,000 transactions on October 3. This level of network activity hasn't been witnessed since late July, underscoring the demand and utility of the AVAX token.

Stars Arena TVL Soars

One metric that vividly reflects the overwhelming enthusiasm for Stars Arena is its Total Value Locked (TVL). Data compiled by DeFiLlama paints a staggering picture of growth.

TVL Growth

Within the first week of its launch, TVL skyrocketed from a mere $33,000 to an astonishing $1.17 million. This exponential surge translates to a phenomenal 3,400% increase in capital inflow into Avalanche's own monetized SocialFi platform.

Stars Arena vs. Competitors

Notably, Stars Arena has swiftly risen to become the second-largest SocialFi platform in terms of TVL, leaving its competitors trailing behind. But what's driving this rapid ascent?

AVAX-Denominated Transactions Surge

The surge in Stars Arena's popularity has not only had a substantial impact on its own metrics but also on the Avalanche network as a whole.

Increased Network Activity

AVAX-denominated transactions have witnessed a remarkable 113% increase since September 27, reaching a peak of 376,000 transactions on October 3. This level of network activity hasn't been witnessed since late July, underscoring the demand and utility of the AVAX token.

Correlation with AVAX Price

The Transaction Count metric, often a reliable indicator of blockchain activity, reinforces the notion that AVAX is gaining traction for economically viable transactions. As a direct consequence of this heightened network activity, the AVAX token has experienced a notable 10% price surge between September 27 and October 4.

source tradingview

AVAX Price Outlook

The close correlation between the launch of Stars Arena and the burgeoning adoption of SocialFi on the Avalanche network sets the stage for an intriguing AVAX price prediction.

Bullish Momentum

It's not unfathomable to imagine that AVAX bulls could leverage this momentum to drive the ongoing price rally toward the coveted $20 mark.

GIOM Data Analysis

Adding credence to this optimistic outlook is the Global In/Out of Money Around Price (GIOM) data, which provides insights into the entry price distribution of current Avalanche investors.

Cautionary Note

However, it's essential to remain cautious. A significant number of addresses have purchased AVAX below current prices, with some securing their holdings at the minimum price of $9. This cluster of investors could form a substantial support buy-wall. Nevertheless, should this vital support falter, it could trigger a prolonged reversal of the Avalanche price toward the $7 range.

Conclusion

In summary, the stars seem to be aligning for Avalanche (AVAX) as Stars Arena's rapid growth continues to drive network activity and boost the AVAX market. The close correlation between the SocialFi adoption and AVAX price growth suggests a promising future for this cryptocurrency, with $20 being a realistic target.

As with any investment, it's crucial to exercise caution and conduct thorough research before making financial decisions. This article serves as informational content and not financial advice. Market conditions can change rapidly, so always seek professional guidance and stay informed.

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• FAQs

  What is SocialFi?

• SocialFi, short for Social Finance, is a subcategory of decentralized finance (DeFi) that focuses on merging social media and financial services on blockchain platforms.

• How does Stars Arena impact AVAX?

• Stars Arena's launch on the Avalanche blockchain has led to increased network activity and a surge in AVAX-denominated transactions, positively affecting AVAX's price.

• What is TVL?

• TVL stands for Total Value Locked, which represents the total value of assets locked in a decentralized finance (DeFi) protocol or platform.

• Can AVAX reach $20?

• The close correlation between Stars Arena's growth and AVAX's price suggests the potential for a $20 price target, but market conditions can change rapidly.

• What should investors be cautious about?

• Investors should exercise caution and be aware of potential price fluctuations, especially considering the presence of investors who purchased AVAX at lower prices and the possibility of support buy-walls.

Disclaimer: The information contained in this blog post is for informational purposes only and should not be construed as financial or investment advice. The author of this blog post is not a financial advisor and does not hold any licenses or certifications in the financial or investment industry. Any investment decisions you make based on the information contained in this blog post are at your own risk, and the author of this blog post will not be held liable for any losses or damages that you may incur. Please do your research before making any investment decisions.

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