Avalanche Network noted a sharp drop in activity on the social front. The price of AVAX remains unaffected, the protocol continued to make strides in the DeFi space.
The past quarter, the Avalanche[AVAX] protocol experienced significant growth in terms of activity. This growth was driven by the success of several dApps operating on the platform, with TraderJoe being one of the main contributors to this growth.
Realistic or not, here is AVAX’s market cap in terms of BTC
Is Avalanche’s Popularity Declining?
In recent weeks, however, social activity around AVAX has declined. According to data from AVAX Daily, weekly social mentions for AVAX are down a whopping 309.7%. In addition, social engagements for the protocol also decreased by 3.98% over the same period.
🔺Avalanche Weekly Social Signals🔺
— AVAX Daily 🔺 (@AVAXDaily) July 15, 2023
In addition, the social outlook regarding the Avalanche protocol remained negative over the past week. This was demonstrated by Santiment’s data, which indicated that the weighted sentiment for Avalanche was overwhelmingly negative, implying that the negative comments for Avax outweighed the positive ones at the time of writing.
The price of AVAX continues to rise
However, Avalanche’s declining social progress did not hinder AVAX’s price growth. Since testing the $0.406 support level on June 10, the AVAX token price is up 45.82% and was trading at $14.64 at the time of writing. In recent weeks, the price of AVAX has seen multiple highs and high lows and has managed to establish a bullish trend.
The RSI indicator stood at 54.91, implying that the momentum was with the buyers. The CMF at 0.14 also painted a positive picture suggesting buying pressure for AVAX.
One of the ways Avalanche could continue to support AVAX’s growth is by burning AVAX tokens. According to Avalanche Explorer data, the protocol burned a total of 2.5 million tokens at the time of writing.
When a transaction takes place on the Avalanche network, it burns the transaction fee and sends it to an unrecoverable address. This fire mechanism has several goals, such as reducing inflation and increasing the scarcity of AVAX tokens as time goes on.
🔥 Recent 2.5 Million Burn Milestone by Avalanche: Revealing the Burned Fees Dynamics 🔥
• What are burnt fees
• When burned fees occur
• How Avascan provides insight into burnt reimbursements
• Statistics: Total Fees Burned and AVG Burned Fees
• …more#Avalanche #AVAX pic.twitter.com/5Bwy4qJ7zc
— Avascan 🔺 The Avalanche Explorer (@AvascanExplorer) July 14, 2023
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Coming to the state of the protocol, it was noted that the Avalanche network was doing relatively well, especially in the DeFi sector.
The data from Artemis indicated that the protocol’s TVL has grown significantly in recent weeks. One of the biggest contributors to the growing TVL on the Avalanche network was the increasing DEX volumes on Avalanche, which also increased strongly along with Avalanche’s TVL.
This post Has Avalanche lost its audience? Data suggest…
was published first on https://ambcrypto.com/is-avalanche-popularity-declining-how-will-avax-react/