For Avalanche's native token, AVAX, a crypto expert named Hitesh Malviya has painted a positive future in a technical breakdown posted on Twitter. According to his analysis, AVAX may be on the verge of a significant price move, with a $20 goal. However, recent developments, notably those originating from Stars Arena, might have altered the course. Here's a closer look:

peaks and then teeters in network usage?

Malviya drew attention to the network stats by revealing that AVAX experienced a stunning 300% increase in daily burn fees in just four days. For those who are unaware, these costs are eliminated with each Avalanche transaction, thereby creating a shortage that, in theory, may drive up the price of AVAX.

The data on Avascan, Avalanche's block explorer, is consistent with the startling rise in burn rates. Malviya projected that if this trend continued, it may create a positive feedback loop that would draw in more users, increase transaction volume, and gradually deplete the supply of AVAX.


The Stars Arena: The Role and Rumble

Malviya discussed StarsArena, a popular play-to-earn game, underlining its crucial significance by representing a staggering 50% of daily transactions on Avalanche. This significant transactional footprint is supported by publicly available data.

Malviya's estimates state that if StarsArena can maintain its current rate for only one more week, it might soon play a significant role in influencing AVAX burn rates and wider acceptance. Though the future seems a little foggy, Dune Analytics charts show StarsArena's clear early success.

The Moment of Truth


Theoretically sound, Malviya's study supported the possibility of an AVAX upswing. However, due to its complex elements, cryptocurrency trading should always be done with prudence. It is crucial to keep in mind that numerous factors, such as market dynamics, substantial stakeholder moves, and unanticipated events, have an impact on price patterns.

Just two hours after his initial analysis, Malviya reiterated this conclusion with a fairly depressing message. He informed the cryptocurrency community of a serious security flaw in StarsArena's smart contract, citing an official StarsArena communication. Such information might surpass any bullish momentum for AVAX that had been anticipated.

The Next Steps

Despite this setback, Avalanche's advantages as a platform remain undeniable, especially its rapid transaction times and Ethereum compatibility. If StarsArena is able to get out of its current predicament and other decentralized applications are successful on Avalanche, AVAX can possibly enjoy renewed hope. As always, shrewd traders will keep their ears to the ground and promptly adjust to any unforeseen issues that develop in the crypto industry.

Disclaimer: We don,t provide any Investment advice.