Avalanche (AVAX) has experienced volatile movements since the beginning of 2024, raising investor concerns. While there was a surge in popularity due to increased interest in SocialFi dApps, the hype was short-lived, affecting not only SocialFi dApps but also networks associated with AVAX.
Despite the downturn, NFTs remain significant for the Avalanche network, attracting user interest. The past six months have seen an uptick in both new and returning NFT users.
Two NFT collections, Dreamheadz and LoFi Leopards, have notably contributed to the growth of the Avalanche ecosystem, indicating a positive trend in Avalanche’s NFT sector.
However, despite progress in NFTs, Avalanche’s network has seen a noticeable decline in other areas, such as DeFi. This is reflected in the decrease in Total Value Locked (TVL), stablecoin volume, and trading volume on the network, suggesting waning interest in Avalanche.
Overall, while Avalanche has made positive strides in the NFT sector, it faces significant gaps in growth across other domains. Revenue for the protocol has declined due to reduced earnings in other areas, with network revenue dropping by 94% in the last month, and a 10.7% decrease in daily active users, potentially impacting AVAX’s future price, which has fallen by 36.4% in the last month to $29.79 at the time of writing.