Convergence

Token

Burn

Avalanche

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/surge-in-avalanche-networks-avax-token-destruction" rel="noopener noreferrer nofollow">Surge in Avalanche Network’s AVAX Token Destruction</a><br></p>
<p style="text-align: justify">Avalanche’s native token, AVAX, has witnessed a significant surge in its burn rate over the last week, indicating an increased pace of token elimination from the market. Analysis of Avascan data revealed that approximately 31,650 AVAX tokens have been incinerated in the past seven days, with a notable spike in burns occurring on February 24.</p>
<h2 id="heightened-network-activity-spurs-burn-rate">Heightened Network Activity Spurs Burn Rate</h2>
<p style="text-align: justify">This sudden uptick follows a period of lower, more stable daily burn rates of 1,000 to 1,300 tokens. The recent burns account for more than half of the total tokens destroyed in the last 30 days. There’s a correlation between the enhanced burn rates and a rise in network transactions, suggesting that Avalanche may be employing a strategy of burning all transaction fee revenues.</p>
<p style="text-align: justify">The increased network usage implies greater transaction fees and, hence, a larger quantity of AVAX being burned, which in theory should reduce supply and be seen as positive for price. Despite this, AVAX has not experienced upward price momentum, with an 18% decrease in futures open interest over the past 10 days.</p>
<h2 id="technical-indicators-and-market-sentiment">Technical Indicators and Market Sentiment</h2>
<p style="text-align: justify">Currently, the long/short ratio of AVAX hasn’t surpassed 1, hinting at a prevalence of bearish sentiment among leveraged investors. Technical analysis shows the Relative Strength Index retreating upon testing the neutral 50 threshold, while the Moving Average Convergence Divergence remains below the signal line, flagging potential for a price pullback. Nevertheless, a bullish crossover might be imminent, potentially indicating a positive trend reversal for AVAX.</p>
<p style="text-align: justify">In recent market performance, AVAX has seen a 8.46% decrease in value over the last week, dampening speculative interests. The token’s pricing trajectory and speculative dynamics will likely be influenced by both the burn rate and broader market sentiment going forward.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/surge-in-avalanche-networks-avax-token-destruction" rel="noopener noreferrer nofollow">Surge in Avalanche Network’s AVAX Token Destruction</a></h5>

Surge in Avalanche Network’s AVAX Token Destruction

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