Avalanche

Taking to X on November 22, one user, @kevinsekniqi,&nbsp;<a class="editor-rtfLink" href="https://twitter.com/kevinsekniqi/status/1727312211209793785" target="_blank" rel="noopener nofollow">notes</a> that the Avalanche C-Chain is burning roughly $12.65 of AVAX every second, a development that could be a massive boost for AVAX in the long term. 
The surge in AVAX burning on the C-Chain is primarily due to the launch of inscriptions, which permit storing data on the Avalanche’s C-Chain, pushing the number of AVAX being taken out of circulation. 
<h2 id="avalanche-burning-avax-at-record-pace">Avalanche Burning AVAX At Record Pace</h2> 
@kevinsekniqi estimates that if the burn rate is maintained at spot rates, it could see approximately $400 million of the coin taken away from circulation. This could be a significant figure supporting AVAX bulls long-term since reducing supply at constant demand would naturally lead to price gains. 
The heightened activity in recent days stems from the <a href="https://app.blockworksresearch.com/" target="_blank" rel="noopener nofollow">over</a> 2.3 million daily transactions tied to users creating and transferring “ASC-20” tokens to inscribe data permanently onto Avalanche’s C-Chain. On average, the Avalanche C-Chain processes around 450,000 transactions daily. However, this figure has been changing in recent days, reading from on-chain data. 
On-chain <a href="https://snowtrace.io/chart/dailyburnt" target="_blank" rel="noopener nofollow">activity</a> is up roughly 4X due to inscriptions, driving the network’s revenue as gauged by gas fees collected. 
<img loading="lazy" decoding="async" class="size-full wp-image-561998" src="https://www.newsbtc.com/wp-content/uploads/2023/11/Screenshot463.png?resize=1024%2C413" alt="Change in on-chain activity on the C-Chain | Source: SnowTrace" width="1024" height="413" srcset="https://www.newsbtc.com/wp-content/uploads/2023/11/Screenshot463.png?resize=1024%2C413?w=1292 1292w, https://www.newsbtc.com/wp-content/uploads/2023/11/Screenshot463.png?resize=1024%2C413?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2023/11/Screenshot463.png?resize=1024%2C413?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2023/11/Screenshot463.png?resize=1024%2C413?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2023/11/Screenshot463.png?resize=1024%2C413?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2023/11/Screenshot463.png?resize=1024%2C413?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
Through inscriptions, new use cases, as demonstrated in Bitcoin, around provable ownership and identity have emerged. Since Avalanche is a public ledger maintained by distributed validators operating nodes, gas fees must be paid. Part of the gas is burnt as part of Avalanche’s structure. 
<h2 id="ftx-group-selling-avax-bulls-dominant">FTX Group Selling AVAX, Bulls Dominant</h2> 
It is not immediately clear how the spike in the number of inscriptions on the C-Chain will impact prices. Though more inscriptions could support bulls, other external market factors should be considered.&nbsp; 
According to Scopescan&nbsp;<a class="editor-rtfLink" href="https://twitter.com/0xScopescan/status/1727228662368670037" target="_blank" rel="noopener nofollow">data</a>, FTX Group, a team tasked with managing FTX estate, recently sent 916,780 AVAX worth $20.7 million to Binance. Transfers to centralized exchanges are often interpreted as bearish. Following this, AVAX prices fell by 13% on November 21.&nbsp; 
<img loading="lazy" decoding="async" class="size-full wp-image-561999" src="https://www.newsbtc.com/wp-content/uploads/2023/11/F_hYdwwbEAAMMp6.jpeg?resize=1024%2C576" alt="FTX Group moving AVAX to Binance | Source: Scopescan on X" width="1024" height="576" srcset="https://www.newsbtc.com/wp-content/uploads/2023/11/F_hYdwwbEAAMMp6.jpeg?resize=1024%2C576?w=1920 1920w, https://www.newsbtc.com/wp-content/uploads/2023/11/F_hYdwwbEAAMMp6.jpeg?resize=1024%2C576?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2023/11/F_hYdwwbEAAMMp6.jpeg?resize=1024%2C576?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2023/11/F_hYdwwbEAAMMp6.jpeg?resize=1024%2C576?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2023/11/F_hYdwwbEAAMMp6.jpeg?resize=1024%2C576?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2023/11/F_hYdwwbEAAMMp6.jpeg?resize=1024%2C576?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2023/11/F_hYdwwbEAAMMp6.jpeg?resize=1024%2C576?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
Prices remain stable, and AVAX maintains an uptrend despite prices contracting this week. Looking at the developments in the daily chart, the coin roared 190% from October 2023 lows. It peaked at around $16 in November.&nbsp; <a href="https://www.tradingview.com/x/TnBAbQ1E/" rel="nofollow"><img loading="lazy" decoding="async" class="size-full" src="https://www.tradingview.com/x/TnBAbQ1E/" alt="Avalanche price trending downward on the daily chart | Source: AVAXUSDT on Binance, TradingView" width="1233" height="592"></a> 
At present, prices have cooled off, dropping by approximately 18%. Nonetheless, the uptrend remains. Any break above $16 could spur more activity, even lifting the coin towards August 2022 highs of around $30.&nbsp;

Avalanche C-Chain Burning $12.65 Of AVAX Every Second, What Does It Mean For Price?

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