Avalanche’s Stars Arena Holds a Strong Seat in SocialFi Sector

SocialFi is emerging as one of the most popular sectors in the Crypto universe, seeking the attention of crypto fans towards the SocialFi network. Avalanche’s SocialFi network Stars Arean showcased an outstanding performance and gained a surge in overall Total Value Locked (TVL). the situation indicates a strong presence of Avalanche in the crypto environment.

Why Avalanche is Gaining Popularity in SocialFi? 

Avalanche, a blockchain network with native token AVAX and one of the biggest competitors to Ethereum has secured its strong position in the SocialFi sector. A sudden spike is observed in Avalanche’s SocialFi network Stars Arena’s TVL, indicating the interest of the crypto community towards the network. 

On January 27, 2024, Stars Arena showed an outstanding comeback, reaching $625,287 in TVL and $727.54K in revenues, According to DefiLlama report. 

Currently, the SocialFi sector is not doing well in the crypto universe, but the Avalanches Stars Arena network is somehow holding users’ interest. 

Stars Arena is a decentralized social media platform launched on September 27, 2023, and streaming on the Avalance network. The platform allows users to sell and trade shares and investigate the value of the asset using market dynamics. Additionally, the platform doesn’t require any referral code or deposit to gain access which is one of the main rationales behind Stars Arena’s popularity. 

Since the launch date, the platform showcased outstanding performance. According to the DefiLlama report, the platform generated over $2.78 Million before the ongoing exploit took place on 7 October 2023. 

Furthermore, the platform generated around 10,000 wallets in between October 3-4, 2023, as per the data of Dune Analytics. Additionally, the platform has handled over 250K transactions on a daily basis, hitting a cumulative volume of over $5 Million. 

The positive comeback of Stars Arena is expected to contribute to the overall credibility and attractiveness of the Avalanche network.

Factors Influencing Avalanche’s Performance 

Stars Arena platform holds the potential to sustain Avalanche’s position and popularity even in the cooling market. 

However, there are few key factors that affect Avalanche’s performance. The declining interest of individuals in the NFT sector has heavily influenced the network’s performance (adversely).

The NFT sector of the platform hasn’t shown the same level of popularity; witnessed in a 12.5% of decline in sales volumes of Avalanche NFTs. A concurrent drop in the social volume of the platform emerged as the main reason.

Apart from this, a heavy decline was observed in the AVAX token holders, indicating negative sentiments around the Avalanche platform. AVAX token’s current price is $32.37 in the past 1 day with a market cap of $11.8 Billion. In addition, a 4.69% decline was recorded in AVAX price last week. 

Keeping these sentiments in mind, Stars Arena is expected to sustain the long-term growth and progress of the Avalanche ecosystem.

With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.