Even though the FTX collapse severely hurt the cryptocurrency market, Avalanche was still able to gain from the situation. Popular gaming company TSM intended to cooperate with FTX to create its own crypto-based gaming network. Avalanche was able to intervene after the collapse and make an announcement about a collaboration with the company.
The company’s competitive gaming platform, TSM’s Blitz, will burn a percentage of the $AVAX fees with each transaction that players make in order to cover gas costs.The Avalanche network’s current condition could be improved by this deal, particularly in the NFT division. Data from Dune Analytics showed that just 27.1% of the total NFT volume on the Avalanche network is made up of gaming NFTs. The relationship between Avalanche and TSM may enhance the volume of Gaming NFTs that Avalanche generates.
Together with the NFT industry, Avalanche would also need to witness improvements in the activity on its dApps. Prominent dApps on the Avalanche network like GMX and TraderJoe saw a sharp drop in overall activity. The number of distinct active wallets on TraderJoe and GMX decreased by 56% and 18%, respectively, according to Dapp Radar’s data.
Other aspects, such volume and number of transactions, also had an impact on Trader Joe.
The volume on the TraderJoe dApp was $55.03M at the time of publication, down 58.46%. Consequently, throughout the same time period, the network’s transaction volume decreased by -36.6%.
The number of daily active users on the network was ultimately impacted by the fall in dApp usage. The network’s active user base decreased by 14.1% over the previous month, according to data from Token Terminal. Users’ interest in the network may grow as a result of recent advances, and they may return.Yet, the network’s active developer population also decreased. This suggests that there is virtually little prospect of fresh developments coming to the Avalanche network anytime soon.
AVAX has experienced declines in the charts as well. Together with AVAX’s volume, the price of the drug started to fall on February 22. AVAX volume has decreased from 709.5 million to 149 million since that time. AVAX’s price volatility has increased throughout that time. This might deter risk-averse investors from purchasing AVAX.