FTX’s loss may be Avalanche’s gain, but here’s AVAX

  • Avalanche has teamed up with gaming company TSM to increase interest in the protocol
  • The number of users has dropped as the price of AVAX fell

While the collapse of FTX was a huge blow to the crypto market, Avalanche managed to capitalize on this ordeal. TSM, a popular gaming company, had plans to set up its own crypto-based gaming network with FTX. However, after the collapse, Avalanche managed to swoop in and announce a partnership with the company.

Read Avalanche’s price forecast 2023-2024

TSM’s Blitz, the company’s competitive gaming platform, will use $AVAX for gas fees, burning a portion of the $AVAX fee with every transaction gamers make.

This deal could improve the current state of the Avalanche network, especially in the NFT division. Based on Dune Analytics data, Gaming NFTs were only 27.1% of the total NFT volume on the Avalanche network. Avalanche’s TSM partnership could increase the contribution of Gaming NFTs to Avalanche’s NFT volume.

Besides the NFT sector, another area where Avalanche should see improvements is in activity on its dApps. Popular dApps on the Avalanche network, such as TraderJoe and GMX, recorded a significant drop in overall activity. According to data from Dapp Radar, the number of unique active wallets on TraderJoe and GMX fell by 56% and 18% respectively.

In addition, Trader Joe was hit in other areas such as volume and number of trades.

At the time of writing, the volume on the TraderJoe dApp was $55.03 million, after dropping 58.46%. Subsequently, the number of transactions on the network fell by -36.6% over the same period.

Source: Dapp Radar

Long road ahead…

The drop in dApp activity ultimately impacted the number of daily active users on the network. Data from Token Terminal showed that the number of active users on the network has dropped by 14.1% over the past month. New developments on the network can increase the interest of users and bring them back to the network.

However, the number of active developers on the network also dropped. This implies that the chance of new developments coming to the Avalanche network in the near future is very small.

Source: token terminal

Realistic or not, here is AVAX’s market cap in terms of BTC

For its part, AVAX has also suffered in the charts. The price of AVAX started falling on February 22 along with the volume of AVAX. Since then, AVAX’s volume has dropped from 709.5 million to 149 million.

During that period, AVAX price volatility has increased. This could deter risk-averse investors from buying AVAX.

Source: Sentiment

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