Avalanche’s AVAX Token Defying the Bear Market
While the overall cryptocurrency market remains stagnant, Avalanche’s native AVAX token is showing strong gains. Over the past few days, AVAX prices have increased by 13%, bucking the trend of the bear market.
Avalanche’s Rising Popularity
Santiment, an on-chain analytics provider, has observed a bullish sentiment among traders towards Avalanche. The platform noted that AVAX was trending on its social media analysts platform. This increased activity and sentiment can be attributed to the popularity of Stars Arena, a decentralized Twitter-like SocialFi application built on Avalanche.
Stars Arena allows users to buy shares and tip others on their posts, and it has seen a surge in popularity. Despite having a total value locked of just $1.48 million, it has experienced a 350% increase in activity over the past three days.
Santiment believes that Avalanche could be the next big gainer once the markets start picking up again, comparing it to previous successful cryptocurrencies like SOL and DOT.
Flaws and Fixes for Stars Arena
On October 5, Stars Arena faced an attack due to flaws in its smart contracts. Malicious actors attempted to drain funds from the platform but were only able to spend $5 for every $1 in total value locked. The exploit has since been fixed, but there were reports of stolen Stars Arena shares.
AVAX Price Outlook
Despite the issues with Stars Arena, AVAX has been performing well this week. The token is currently trading at $10.36, up 3.5% for the day. However, it has dropped 50% since its peak in mid-April and remains down 93% from its November 2021 high of $145.
Hot Take: AVAX Defies Bear Market with Strong Gains
Avalanche’s AVAX token is defying the stagnant crypto market by recording significant gains. While other cryptocurrencies are struggling, AVAX prices have increased by 13% in recent days. This surge in activity is attributed to the rising popularity of Stars Arena, a decentralized SocialFi application built on Avalanche. Despite facing security flaws and attacks, Avalanche remains an attractive investment option for traders who believe it could be the next big gainer once the overall market recovers. However, it’s important to consider the volatility of AVAX prices and the potential risks associated with decentralized platforms like Stars Arena.
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