Crypto Resilience: Avalanche’s AVAX Defies Market Slump with a 13% Surge

Crypto Resilience: Avalanche’s AVAX Defies Market Slump with a 13% Surge

Crypto News – In the midst of a deepening bear market, Avalanche, a layer 1 blockchain network, is defying the prevailing lethargy in the crypto market with its native AVAX token making significant gains over the past week.

While the broader crypto markets remain subdued, Avalanche stands out by recording a remarkable 13% increase in AVAX prices over the past few days.

Avalanche’s AVAX Defies Market Trends

On October 6, on-chain analytics provider Santiment reported a bullish sentiment among traders towards Avalanche. AVAX was observed to be trending on Santiment’s social media analytics platform.

The surge in activity and positive sentiment surrounding Avalanche can be attributed to a decentralized SocialFi application, Stars Arena, akin to Twitter. This platform allows users to buy shares and tip others for their posts, and a substantial amount of ETH is being bridged to the platform. Stars Arena is a fork of the popular Friend.tech platform, which has also seen a surge in popularity.

Despite Stars Arena’s total value locked being just $1.48 million according to DeFiLlama, it has experienced an impressive 350% surge in the past three days as activity intensifies.

Santiment further speculated that Avalanche could potentially emerge as the next major gainer once the markets regain momentum, drawing a parallel with the successes of SOL and DOT in previous bullish cycles.

However, on October 5, Stars Arena was subjected to an attack due to vulnerabilities in its smart contracts. The platform released a statement acknowledging malicious attempts to spend $5 to drain $1 from its Total Value Locked (TVL). The exploit was promptly addressed. Additionally, there were reports of stolen Stars Arena shares, amounting to approximately 1.1 million dollars.

AVAX Price Prospects

Setting aside the issues with SocialFi, AVAX has showcased resilience as one of the strongest-performing crypto assets during the week. At the time of writing, the AVAX token had surged by 3.5% for the day, trading at $10.36.

In comparison, the broader crypto markets experienced a decline during the week, with major cryptocurrencies retracing.

Over the past fortnight, AVAX has demonstrated an impressive 18% gain; however, it has retreated by 50% since its peak in mid-April 2023. Furthermore, the token remains significantly down by 93% from its all-time high of $145 in November 2021.