Journalist
Posted:
- Transactions on the network increased thanks to a new token standard.
- AVAX volume fell while TVL fell slightly.
According to SnowTrace it is Avalanche of [AVAX] C-chain blockchain explorer, transactions on the network reached a whopping 6.35 million on November 23, representing one of the highest daily participations on the blockchain ever.
While many wondered what happened, AMBCrypto discovered the reason. Details of our findings showed that the inscriptions on ASC-20 were responsible for the walk. ASC-20 tokens are similar to Bitcoin ordinal numbers BRC-20 and Dogecoins [DOGE] DRC-20.
AVAX is not in the middle
For context, inscriptions are pieces of metadata that can be added to the smallest unit of a cryptocurrency. So instead of subscribing to sats, ASC-20 subscribing is done on the Avalanche blockchain.
However, at the time of writing, the number of transactions had fallen to 2.75 million. This indicates a decline interest when trading the fungible assets built with AVAX.
Source: SnowTrace
For AVAX, the price has not been positively affected by the increase in the number of transactions. At the time of writing, AVAX was valued at 20.67.
This value indicates a decline of 11.38% over the past seven days. Moreover, after increasing to 1.2 billion on November 22, AVAX’s volume has fallen.
At the time of writing, the volume fell to 356.65 million. The falling volume alongside the falling price is a sign that the token’s direction became weak.
For this reason there may be a shift on the downside, and AVAX could soon turn upside.
Source: Santiment
TVL moves sideways while others prepare
As for the Total Value Locked (TVL), data from DeFiLlama shows that the value has fallen slightly over the past 24 hours. At the time of printing, Avalanche’s TVL amounted to $638.93 million.
The TVL measures the US dollar value of assets locked in a blockchain. It is also a key indicator of investor interest in a protocol. The higher the TVL, the more reliable a protocol is perceived to be.
On the other hand, a decrease in TVL means that market players refrain from interacting with a protocol. In the case of Avalanche, it appears that participants are waiting for the right opportunity before committing liquidity to the protocol.
Source: DeFiLlama
Furthermore, ASC-20 is one of several experiments to emerge from the Avalanche blockchain in recent times.
A few weeks ago, the Layer-1 (L1) project gained market attention. This was due to the introduction of Stars Arena, a Social Finance (SocialFi) platform.
Read Avalanche of [AVAX] Price prediction 2023-2024
However, exploitations on the platform caused market players reduced activity on the network. Meanwhile, ASC-20 isn’t the only token standard following in the footsteps of Bitcoin and Dogecoin.
Around the same period, Fantom [FTM] also experienced an increase in the number of transactions thanks to its own activities FRC-20. There are also speculations about that Solanas [SOL] SPL-20 is about to hit the market.