Impact

Avalanche

Daily

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/avalanche-blockchain-experiences-drop-in-network-activity" rel="noopener noreferrer nofollow">Avalanche Blockchain Experiences Drop in Network Activity</a><br></p>
<p style="text-align: justify">The Avalanche (AVAX) blockchain, a leading Proof-of-Stake ecosystem, has reported a significant decrease in its network usage. Over the previous week, there was a marked drop in the number of transactions on the network. This dip is seen as a potential concern for the platform, which aims to support robust and sustainable smart contract operations. The data suggests a lower engagement with decentralized applications (dApps) within the Avalanche ecosystem, hinting at a shift in user behavior or market dynamics. This report analyzes the implications of the transaction reduction and the underlying factors contributing to this trend.</p>
<h2 id="transaction-trends-and-network-gas-consumption">Transaction Trends and Network Gas Consumption</h2>
<p style="text-align: justify">Avalanche’s primary smart contract platform, the C-Chain, recorded 7.66 million transactions last week—a decrease of nearly 17% from the previous week. Alongside the drop in transactions, the network’s gas consumption also fell by around 2.7%. This decline in activity suggests a reduction in the use of complex smart contracts typically associated with higher gas costs.</p>
<h2 id="falling-daily-transactions-and-potential-revenue-impact">Falling Daily Transactions and Potential Revenue Impact</h2>
<p style="text-align: justify">Since reaching a peak in December during a period of high activity, daily transactions on the C-Chain have seen a steep decline. A graph depicting this trend shows a fall from over 5 million transactions to a low of 200,000 in early February. This reversal in fortunes hints at a cooling off period for the blockchain after a previously bullish phase in 2023. The decreased transaction volume may also be affecting Avalanche’s revenue from transaction fees.</p>
<p style="text-align: justify">Deflationary pressures on AVAX have similarly lessened, as indicated by data from Avascan showing a decline in the number of AVAX burned due to reduced transaction volume. This easing of deflationary activity is likely contributing to a 1.1% drop in the <a href="https://en.bitcoinhaber.net/developments-in-crypto-etf-applications-and-sec-delays" rel="noopener noreferrer nofollow">cryptocurrency</a>‘s price over the week. Nonetheless, recent trends show a 4% price uptick for AVAX, accompanied by a significant increase in trading volume.</p>
<h2 id="avax-futures-and-market-sentiment">AVAX Futures and Market Sentiment</h2>
<p style="text-align: justify">The bearish trend is further evidenced by data from Coinglass, which notes a decrease in the value locked in AVAX Futures Open Interest, coinciding with a drop in the spot price. The Open Interest in AVAX Futures has seen a 5% decline week-on-week. The growing number of short positions relative to long positions among investors supports this downtrend, signaling a market leaning towards bearish expectations for the AVAX token.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/avalanche-blockchain-experiences-drop-in-network-activity" rel="noopener noreferrer nofollow">Avalanche Blockchain Experiences Drop in Network Activity</a></h5>

Avalanche Blockchain Experiences Drop in Network Activity

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