Why Is Avalanche (AVAX) Rising Today?

The decentralized social media platforms have gained notable traction lately, as evidenced by the increasing interest of the crypto market enthusiasts. Meanwhile, the launch of the decentralized social media (DeSo) app Stars Arena on Avalanche’s C-Chain network has sparked a surge in activity and AVAX token price, with social media influencers joining the platform.

Stars Arena’s Impact on Avalanche Network

The recent launch of Stars Arena, a DeSo application on Avalanche’s C-Chain network, has triggered a significant increase in both network activity and the price of AVAX, Avalanche’s native token. Stars Arena, inspired by Friend.tech, has gained significant attention since its late September launch.

Meanwhile, on October 4, the Avalanche chain recorded 577,000 transactions, marking the highest activity level in the last quarter. This surge was primarily a result of the launch of Star Arena. In the last 24 hours, Star Arena itself saw 454,000 transactions and reached 12,000 active addresses.

Notably, users on Stars Arena can link their X accounts and use AVAX tokens to purchase “tickets” of other users, enabling access to private chats. Unlike Friend.tech, Stars Arena features a public feed, making it more accessible to users. However, some users have reported bugs and a lack of information about the application’s team.

Despite these challenges, Stars Arena is part of the growing trend of social finance platforms in the crypto world. Similar platforms like Alpha on the Bitcoin network, Friendzy on Solana, and PostTech on Arbitrum have emerged. However, despite the recent interest in Stars Arena, Friend.tech remains a market leader.

Also Read: Whale Dumps $14 Mln XRP Despite Ripple’s Latest Wins

AVAX Price & Performance

The launch of Stars Arena on Avalanche’s blockchain has had a significant impact on AVAX’s price and network activity. The market participants seem to have lauded the news of Stars Arena, as evidenced by the surge in its price.

Meanwhile, several influencers have joined the platform, pointing towards its growing adoption. Notably, as most services on the platform are denominated in AVAX tokens, the global adoption is expected to drive demand for AVAX as well.

The Avalanche price was up 4.78% to $10.19 as of writing on October 5, while its volume rose 43.61% to $199.12 million. On the other hand, the market cap of the crypto rose 4.91% to $3.60 billion. Over the last 24 hours, the crypto has touched a high of $10.30.

Also Read: Crypto Prices Today, Pepe Coin Flat While Bitcoin, TWT Rally

Source