Could AVAX Surge to 20 Dollars Amidst the SocialFi Hype?

Crypto News- This week, Avalanche (AVAX) experienced an impressive 10% surge, reaching a notable $10, thanks to the influx of influencers flocking to the newly unveiled SocialFi platform, Stars Arena. This surge in network activity has prompted questions regarding AVAX’s ability to maintain its bullish momentum.

Could AVAX Surge to 20 Dollars Amidst the SocialFi Hype?

Stars Arena, the SocialFi platform built on the Avalanche blockchain, made its debut on September 27, immediately sparking a significant uptick in AVAX network activity. In just one week, Stars Arena’s Total Value Locked (TVL) skyrocketed from $33,000 to an astonishing $1.17 million—an extraordinary increase of 3,400%.

Consequently, Stars Arena has risen to become the second-largest SocialFi platform by TVL, surpassing its competitors, including Post.Tech. This remarkable TVL growth signifies a surge in investments from both existing users and new entrants to the ecosystem.

Additionally, several prominent social media influencers, among them Onlyfans sensation Vannessa Sierra, have eagerly joined Stars Arena, publicly sharing their memberships and earnings on platforms like Twitter. Given that most services and products within the protocol operate with AVAX as the primary currency, the growing adoption of Stars Arena is poised to boost demand for the AVAX token.

Further emphasizing this positive outlook is the 113% increase in AVAX-denominated transactions since September 27, culminating in 376,000 transactions recorded on October 3. Such a surge in network activity typically indicates a growing demand for AVAX as it increasingly becomes the preferred currency for various economically viable transactions.

In the wake of these developments, the AVAX token has already enjoyed a 10% surge in value between September 27 and October 4.

In summary, the evident correlation between the launch of Stars Arena and the burgeoning growth of the AVAX network suggests that the adoption of the SocialFi protocol by influential social media figures could very well propel the Avalanche price upward throughout October. With the potential to break through the initial sell-wall at $15, AVAX bulls may have their sights set on a target of $20. However, should the AVAX price dip below $7 and fail to garner support from investors who entered at lower price points, a more protracted price reversal might come into play.