Key takeaways

  • StarsArena overtakes FriendTech when measuring total transactions, despite FriendTech dominating the market just two weeks ago

  • Avalanche enjoyed a +202% gain to real volume in a single day due to the rapid adoption of StarsArena, AVAX token up +14% in the past week

  • CoinCodex algorithm expects AVAX to sustain its bullish momentum, targeting a further +72% gain in the next three months

StarsArena brings volume back to Avalanche and overtakes FriendTech as the dominant SocialFi platform in Web3

Avalanche (AVAX) has seen a significant uptick in network activity following the rapid rise of StarsArena, a SocialFi platform that enables users to buy and sell shares in other users.

Previously, FriendTech had been gaining significant mindshare online thanks to providing a similar solution on the Ethereum network. FriendTech adoption was built on the premise that anyone could own shares in any one of the platform’s users, with prominent figures on social media taking the opportunity to promote the site and sell their shares.

StarsArena offers a very similar solution to FriendTech, which had been dominating the SocialFi market as recently as mid-September. Both platforms offer a sizable percentage of transaction fees as a reward to the user, which provides a strong incentive for users to stay active and promote their shares.

StarsArena overtakes FriendTech to become the most-used SocialFi trading platform in the past week, via @jayks on Twitter

As of this week, StarsArena’s market dominance has skyrocketed to more than 60%, overtaking FriendTech as the driving force behind the SocialFi movement. An attractive offering and a healthy dose of influencer marketing has helped to accomplish the feat, with the Avalanche blockchain now benefiting from a marked increase to its total volume traded.

Real volume on Avalanche rises +202% in one day, AVAX token climbs +14% on the week

The rapid rise of StarsArena has driven a major increase to real volume on the Avalanche blockchain in the past week. On 4th October, real volume on Avalanche trebled from $32.6 million to $98.7 million when compared against the previous day — a volume boost that drove a 13% surge in the price of AVAX on the daily candle.

Real volume on Avalanche over the past 30 days, via Messari

As of the time of writing, AVAX has risen almost 15% in the past seven days. This follows a prolonged period of downside in which AVAX had lost 62% of its value from its yearly high, formed in January 2023 at $22.65.

The CoinCodex price prediction algorithm expects this positive period for AVAX to kickstart a long term recovery. Within 3 months, AVAX is expected to rise a further 72% to recapture a key area of support that was formed, and later lost, during the early-2023 run.

From there, the algorithm expects AVAX to continue its climb back towards key ranges that were formed in the 2021 bull market above the $50 price level.

3-month AVAX price prediction, via CoinCodex

Bottom line: AVAX renaissance driven by a native SocialFi alternative to FriendTech, algorithm expects more upside

The recent uptick in real volume for Avalanche, driven by the adoption of SocialFi platform StarsArena, has helped the AVAX token to surge in recent days. While real volume still remains 97% down from Avalanche’s 2021 highs to now, the rapid adoption rate of an Avalanche-based dApp and its ability to overtake an Ethereum counterpart signals a shift in momentum.

The CoinCodex algorithm expects AVAX to break market structure during sustained bullish action over the next three months. If this unfolds, it would confirm the reversal of a multi-year downtrend and likely kickstart the beginning of more positive price action for AVAX.

All-time AVAX price chart, via CoinCodex