Avalanche (AVAX) Traders’ Optimism Wanes as Stars Arena’s Security Breach Signals the Promising Move May Be Over

Hitesh Malviya, a crypto analyst, had painted a hopeful future for Avalanche’s native token, AVAX, with a technical breakdown shared on Twitter. His analysis suggested that AVAX might be on the brink of a pivotal price shift, targeting around the $20 mark. However, unfolding events, particularly from Stars Arena, may have changed the trajectory. Here’s an in-depth look:

Network Usage Peaks, Then Teeters?

Drawing attention to the network metrics, Malviya revealed that AVAX registered an impressive 300% uptick in daily burn fees over a mere span of four days. For the uninitiated, these fees are obliterated with every Avalanche transaction, effectively resulting in a growing scarcity, which, in theory, could bolster AVAX’s price.

This remarkable escalation in burn rates aligns with data available on Avascan, the block explorer for Avalanche. Malviya’s prediction was that such a trend, if sustained, could culminate in a virtuous cycle, drawing in more users, fueling more transactions, and continually decreasing the AVAX supply.

The Role and Rumble of StarsArena

Malviya shed light on StarsArena, a trending play-to-earn game, emphasizing its pivotal role by accounting for a whopping 50% of daily transactions on Avalanche. Data in the public domain corroborates this substantial transactional footprint.

Malviya’s projections posited that if StarsArena can maintain its momentum for just another week, it could be a significant catalyst for AVAX burn rates and more widespread adoption in the foreseeable future. While Dune Analytics charts reveal StarsArena’s undeniable early success, the future seems a tad uncertain.

The Turning Point

In theory, Malviya’s analysis was robust, making a case for a potential AVAX upswing. However, crypto trading, with its multifaceted variables, always warrants caution. It’s essential to remember that price trends are influenced by myriad factors, including market dynamics, significant stakeholder movements, and unpredictable events.

Driving this point home, a mere two hours post his original analysis, Malviya relayed a rather somber message. Citing an official StarsArena communication, he alerted the crypto community to a significant security breach within StarsArena’s smart contract. Such revelations could potentially eclipse any previously anticipated bullish momentum for AVAX.

The Way Forward

Despite this setback, Avalanche’s merits as a platform — particularly its rapid transaction capabilities and Ethereum interoperability — remain undeniable. If StarsArena can navigate its current predicament and other decentralized applications flourish on Avalanche, AVAX might still witness renewed optimism. As always, astute traders will keep their fingers on the pulse, acclimatizing swiftly to the unforeseen challenges that occur in the crypto industry.

Check $RECQ Meme Coin

Sponsored: Invest Responsibly, Do Your Own Research.
Serves as the base currency for all transactions within the Rebel Satoshi platform
ICO stage, offering tokens at a discounted price
Facilitates a smooth and efficient economy within the arcade, supporting both arcade and in-game transactions.
Grants access to a diverse range of gaming experiences in the Rebel Satoshi Arcade,
Contributes to a decentralized, community-driven RebelSatoshi platform that integrates gaming with elements of revolution, freedom, and unity, appealing to users who value such principles.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.


Torsten Hartmann
Torsten Hartmann

Torsten Hartmann has been an editor in the CaptainAltcoin team since August 2017. He holds a degree in politics and economics. He gained professional experience as a PR for a local political party before moving to journalism. Since 2017, he has pivoted his career towards blockchain technology, with principal interest in applications of blockchain technology in politics, business and society.