Avalanche (AVAX) Price Surges Amid Growing Interest in Social App
The price of Avalanche (AVAX) has seen a significant increase as a result of the growing interest in a new social app built on its blockchain. At the time of writing, AVAX is trading at $10.70, representing an 8.3% increase in the past 24 hours. This makes AVAX one of the best-performing cryptocurrencies in the last day and week, with a nearly 17% surge in seven days.
Stars Arena: A Rival to Friend.tech
Stars Arena, a social platform that serves as a rival to Friend.tech, has contributed to this surge. Launched last month, Stars Arena is essentially a copy of Friend.tech built on Avalanche’s Contract Chain (C-Chain). It has gained popularity among users seeking an alternative to Friend.tech, which became extremely popular after its launch in August.
Increase in Transactions and Volume
Transactions on Stars Arena have surged by almost 40% to 218,000 in the past day, according to DappRadar data. Additionally, trading volume has increased by 248% within 24 hours, reaching $3.86 million in transactions.
Social Token-Driven Platform
Stars Arena operates as a social token-driven platform, allowing users to create and monetize online communities. This enables influencers and online creators to monetize their fan base by offering exclusive content and offers. Users can link their Twitter accounts to the platform and trade profile tokens of other members. To facilitate these transactions, users need an Avalanche address linked to their profiles, leading to the surge in blockchain activity and the increase in AVAX price.
Exploit and Security Concerns
Stars Arena has encountered some security issues, as it was exploited earlier this week, resulting in hackers stealing $2,000. The app’s official Twitter account stated that the exploit had been fixed but warned users about ongoing security threats. However, pseudonymous developer and founder of wallet security project Delegate, “foobar,” criticized Stars Arena for introducing new attack vectors in their unverified fork.
Friend.tech’s Exploit and Social App Craze
In a similar incident, Friend.tech, which operates on the Ethereum layer-2 network Base, also experienced an exploit where a hacker drained the accounts of four users, stealing $385,000 in Ethereum. The decentralized social app craze gained traction in August when celebrities like NBA star Grayson Allen showed interest in the Friend.tech platform. While it temporarily declined after its launch, it recently regained popularity.
Hot Take: Avalanche’s Rising Price Reflects Growing Interest in Social Apps
The surge in Avalanche’s price is a direct result of the increasing interest in social apps built on its blockchain. Stars Arena, a rival to Friend.tech, has attracted users seeking alternatives and contributed to the rise in AVAX’s value. With its social token-driven platform and features allowing users to monetize online communities, Stars Arena has seen a significant increase in transactions and trading volume. However, it has also faced security concerns with an exploit that resulted in stolen funds. Nonetheless, the decentralized social app trend continues to gain momentum as demonstrated by the renewed surge in popularity for Friend.tech. As more innovative platforms emerge within this space, the cryptocurrency market can expect further growth and diversification.
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