Avalanche on-chain transactions hit a new high for the year.
Recently, the trading activity on the Avalanche blockchain has seen explosive growth. According to the data, as of mid-June, Avalanche’s 7-day moving average transaction volume (7DMA) surpassed 1 million transactions, setting a record high for the year. This is a significant increase from the daily average transaction volume of nearly 300,000 transactions in early May, which surged to around 690,000 transactions in just two weeks and further accelerated in June.
(Source: THE BLOCK)
However, this wave of trading frenzy did not lead to a simultaneous growth in the number of active addresses. In May, the number of active addresses on Avalanche surged to 296,000, reaching a historic high of 3.6 million addresses in a single month. However, this growth did not continue into June, and the number of active addresses has now fallen back to around 68,000. This means that the surge in Avalanche on-chain transaction volume is driven by a small number of users engaging in intensive operations, rather than a large influx of new capital.
What is the main reason behind arena.trade? The ERC-404 craze is affecting trading data.
One of the driving forces behind the surge in Avalanche on-chain transaction volume is believed to be the recently popular arena.trade platform, which allows users to mint ERC-404 type tokens through posts on X (formerly known as Twitter) and price and trade them using a Bonding Curve.
Every token minting or trading operation triggers a series of on-chain microtransactions, mechanically increasing the overall number of transactions and driving up on-chain fees and traffic metrics.
Prices still face pressure, the market awaits a directional breakthrough.
Although on-chain data is showing activity, the price of Avalanche’s native token AVAX has not experienced a simultaneous increase. According to the latest market data, the current price of AVAX is around $18.23, and from a technical perspective, the key ranges at the moment are as follows:
- Short-term support level: 16 USD
- Initial resistance level: 18.6 USD
- Mid-term resistance level: 21 USD
This shows that the current market has not yet formed a positive cycle between on-chain activities and prices, and some investors are still in a wait-and-see state.
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Summary
Recent developments of Avalanche show that the usage of blockchain is growing, especially with the rise of innovative applications like ERC-404 injecting new vitality into the platform. However, the on-chain heat has not yet translated into a price breakthrough, which may be attributed to factors such as high user concentration and lack of substantial capital inflow. If more practical projects or DeFi protocols can be implemented in the future and attract new users, AVAX’s price might have a chance to break free from the consolidation range and welcome a new wave of market trends.
