Avalanche (AVAX) was another altcoin that caught attention during Solana’s (SOL) incredible year in 2023. The volatile movements that started at the beginning of 2024 have increased investor scrutiny. Looking at the ecosystem in the past periods, there was a surge in popularity due to the growing interest in SocialFi dApps. However, this hype did not last as long as expected. The decline in interest not only affected SocialFi dApps but also networks associated with AVAX.
The Impact of NFTs on Users
Despite the recent downturn, NFTs held an important place for the Avalanche network. NFTs have been at the forefront in attracting user interest to the Avalanche network, with a significant increase in new and returning NFT users over the last six months.
During this period, Dreamheadz and LoFi Leopards, two NFT collections, made significant contributions to the growth of the Avalanche ecosystem. The increase in popularity of these collections seems to be contributing greatly to Avalanche’s growth in the NFT sector.
Current State of Avalanche
Despite progress in the NFT area, the Avalanche network has experienced a noticeable decline in other areas. For example, there has been a significant decrease in interest in Avalanche’s DeFi sector in the last few days.
This situation is also reflected in the Total Value Locked (TVL). On the other hand, the volume of stablecoins emerging on the network and the trading volume on the network have also decreased. This could indicate a waning interest in Avalanche.
Considering all these factors, although Avalanche has taken positive steps in the NFT sector, it is clear that there is still a significant gap in growth in other areas. Due to the decline in revenues in other areas, there has also been a decrease in the revenues obtained by the protocol.
Moreover, the decline in revenues on the network in the last month was 94%. In support of this decrease, the number of daily active users on the network also fell by 10.7% during the same period, highlighting the loss of interest. These factors could impact the price of AVAX in the future.
After retreating from its fantastic price level at the end of last year, the price of AVAX saw a 36.4% decrease over the last month, trading at $29.79 at the time of writing. The 24-hour trading volume of AVAX was at the level of $588 million.
