Avalanche (AVAX) Price Surges 10% as Stars Arena Launches
The price of Avalanche (AVAX) has experienced a 10% increase this week, reaching $10, as social media influencers flock to join the newly launched SocialFi platform called Stars Arena. The launch of Stars Arena on the Avalanche blockchain has led to a noticeable increase in network activity for AVAX.
Stars Arena TVL Reaches $1 Million Within a Week
Stars Arena, which is Avalanche’s answer to Friend.Tech, has been well-received by the global SocialFi community. Data from DeFiLlama shows that within its first week after launch, Stars Arena’s Total Value Locked (TVL) grew from $33,000 to $1.17 million. This represents a staggering 3,400% increase in capital inflows to the platform.
AVAX-Denominated Transactions Surge by 113%
The Avalanche network has witnessed a significant surge in transactional activity this week, indicating that the growth of Stars Arena TVL could drive up demand for AVAX. AVAX-denominated transactions have been steadily rising since September 27 and reached 376,000 transactions on October 3. The last time the Avalanche network saw this level of activity was around July 26.
Bullish Outlook for AVAX Price: Targeting $20
The correlation between AVAX price and the adoption of SocialFi on the Avalanche network suggests that AVAX bulls could drive the price rally towards $20. The Global In/Out of Money Around Price (GIOM) data supports this prediction, showing that if AVAX surpasses the sell-wall at $15, the price could realistically reach $20. However, a drop in Stars Arena’s adoption could lead to a price pullback.
Bears Could Reverse Price Below $7
If AVAX price reverses below $7, the bears may negate the bullish prediction. However, a significant support buy-wall from investors who entered at prices below the current level could prevent a prolonged price reversal. If this support fails, the Avalanche price could decline towards $7.
Hot Take: SocialFi Platform Stars Arena Drives AVAX Price Surge
The launch of Stars Arena on the Avalanche blockchain has sparked increased network activity and capital inflows, leading to a 10% surge in AVAX price. The growth in Stars Arena’s TVL and transactional activity indicates a positive outlook for AVAX, with potential for further price gains. However, the success of AVAX’s rally depends on the continued adoption of SocialFi and the ability to overcome resistance levels. Overall, the correlation between Stars Arena and AVAX suggests that social media influencers adopting the platform could drive up Avalanche price in October.
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