Avalanche [AVAX] raises investors’ hope, but things might take a U-turn

• The maximum TPS on the Avalanche network jumped 24% from the week before.
• The network faced another brief outage on 26 March.

The Avalanche[AVAX] ecosystem shared the weekly status report of activities on its C-chain. One of the major highlights was the big jump in transactions per second (TPS) clocked in by the network.

Over the past week, the highest TPS recorded was 468, an increase of 24% from the highest value in the week before. This suggested that the overall speed and efficiency of the network improved drastically. Notably, the total number of transactions also witnessed a marginal increase.

The C-chain or the Contract chain, is used for smart contracts and Defi apps deployment. Most Avalanche Defi protocols such as AAVE and Trader Joe work on the C-chain.

🔺#Avalanche C-chain weekly on-chain status🔺

🔥Network Status
Transactions: 12594034 +0.10%
Max TPS Observed: 468 +24.15%
Gas Used: 5.66T -1.30%

🔥Staking:
Staking ratio: 62.05%
Staking rewards: 8.48%
Total validators: 1,247
Total delegations: 74,327#AVAX $AVAX pic.twitter.com/2uKyzjDkKW

— AVAX Daily 🔺 (@AVAXDaily) March 26, 2023

Read Avalanche’s Price Prediction 2023-2024

Staking becomes lucrative

The weekly report also disclosed vital stats about staking on the network. The staking ratio witnessed a remarkable increase of 62% from the previous week. Staking ratio refers to the percentage of tokens from the circulating supply that were being staked.

A reason behind users showing interest in staking could be because of the increase in the estimated reward that they will earn. Staking rewards increased more than 8% from the week before.

Furthermore, the total number of validators reached 1,251 at the time of writing, as per the latest date from Avalanche. This number swelled by about 4% since the start of the year.

Source: Avalanche Explorer

However, the social metrics painted a negative picture of the network. There was a drastic fall in the number of social mentions and engagements. Consequently, social dominance also fell by more than 10%.

🔺Avalanche Weekly Social Signals🔺

Most Influential Projects@CheemsInu@traderjoe_xyz@BasedFinance_io@AvascanExplorer

Influencers of the Week@Ste_Cha_FEG@RichardHeartWin@Crypto__Diva@cryptofishx

Source: @LunarCrush#AVAX $AVAX #Avalanche pic.twitter.com/pBaZ7wCMBz

— AVAX Daily 🔺 (@AVAXDaily) March 26, 2023

Will outages act as speed-breakers?

Meanwhile, the network faced a fresh outage as block production was halted for 80 minutes on 26 March. This was the second disruption in three days.

On 23 March, the C-chain stopped producing blocks leading to a two-hour-long outage. South Korea-based crypto exchange UpBit temporarily halted AVAX transactions because of the outage.

How much are 1,10,100 AVAXs worth today?

As per CoinMarketCap, AVAX was down 1.64% over the previous day to be valued at $16.74 at press time.

On the daily timeframe, AVAX moved in a range since 14 March after recovering from the stablecoin-induced chaos in the market.

At the time of writing, the Relative Strength Index (RSI) hovered along the neutral 50 level. Moreover, the Moving Average Convergence Divergence (MACD) gave early signals of bullish momentum. But it was tough to predict the price direction since most of the technical indicators, at press time, gave a mixed signal.

Source: TradingView AVAX/USD