- Avalanche’s new contract deployments reached a six-month high.
- Stars Arena has increased accessibility, even though a recent hack raised concerns.
Avalanche [AVAX]Despite the current challenges of the crypto market, it has demonstrated its commitment to progress by consistently developing and introducing new features into its protocol.
Realistic or not, here is AVAX’s market cap in BTC terms
Contracts on the rise
This commitment was reflected in the increasing number of new contracts deployed on the Avalanche network, which reached a six-month high on October 17.
New contracts implemented on @avax C-Chain hits a six-month high.
Quite a bit is happening on the red chain. pic.twitter.com/JtcJLN9UF5
— Emperor Osmo
(@Flowslikeosmo) October 17, 2023
The growth in contract implementation was significant as it suggested a higher level of activity and adoption of the Avalanche blockchain, which could have a positive impact on its ecosystem.
Additionally, Stars Arena, which operates on Avalanche, contributed greatly to the vibrancy of the network. Stars Arena, as described by Jay Sofue, the VP of marketing for Avalanche, simplified the user experience by allowing users to get started without having to fund with cryptocurrency.
This approach was intended to make the platform accessible to a wider audience, not just web3 users, and empowered creators by charging a reasonable 7% fee.
While there have been notable achievements, it is important to address recent challenges. Stars Arena recently suffered a hack, resulting in a loss of almost $3 million. Such incidents can have negative consequences and affect both the platform’s reputation and Avalanche’s overall performance.
Avalanche’s presence in the DeFi sector
Avalanche’s position in the decentralized finance (DeFi) sector has been marked by some mixed trends. On the one hand, the increase in new contracts and the success of Stars Arena highlighted the positive aspects of the network.
However, DEX volumes and the TVL sector have seen a significant decline.
DEX volumes represent the amount of trading activity on Avalanche, while TVL, or Total Value Locked, reflects the total value of assets staked in Avalanche’s DeFi protocols.
A decline in these metrics could be concerning as it could indicate reduced usage and investor interest in the ecosystem.
Source: Artemis
Taking a closer look at AVAX, Avalanche’s native cryptocurrency, we see that its price has fallen to $9,327 over the past week. This price movement reflected the challenges that many cryptocurrencies have faced during periods of market volatility.
In addition, AVAX trading volume declined. Trading volume is a crucial metric in the cryptocurrency market as it indicates the liquidity of a token. A significant drop in trading volume can result in a less liquid market, which can deter traders and investors.
Is your portfolio green? View the AVAX Profit Calculator
In terms of development activity, Avalanche experienced a decline, indicating a slowdown in the implementation of new features and updates on the network.
This could potentially hinder the growth of the protocol and its ability to remain competitive in the dynamic blockchain landscape.
Source: Santiment