Stars Arena Effect Could Drive Avalanche (AVAX) Price to $15

Key Insights

• Avalanche (AVAX) bulls have made spirited attempts to break down the $10 this week as influencers race to join the newly-launched Stars Arena. 
• Total Value Locked (TVL) on the Avalanche-hosted ‘Stars Arena’ skyrocketed above $1m within its first week.
• Investors and ecosystem participants trading shares on the Stars Arena platform have triggered a 113% spike in transactions on the Avalanche network 

AVAX price retested the $10 area on Thursday, October 5, as crypto influencers race to join Stars Arena, the newly-launched SocialFi platform hosted on the Avalanche blockchain network. On-chain data reveals that this has significantly increased Avalanche network traction. 

Stars Arena Hits $1 Million Total Value Locked (TVL) Within Its First Week

The Avalanche has joined the SocialFi hype as crypto influencers and whale investors reacted positively to the Stars Arena mainnet launch. On-chain data compiled by DeFiLlama shows how investors have piled capital inflows into the week-old protocol.

The chart below illustrates that Stars Arena (TVL) has grown from $33,000 on September 27 to $1.2 million on October 5. This implies that SocialFi participants and crypto influences have increased capital inflows into Stars Arena by 3,400% within its first week.

That move has now seen the Avalanche-hosted Stars Arena become the second-largest SocialFi protocol behind Friend.Tech.

Total Value Locked sums the dollar value of all assets deposited on a particular blockchain protocol. Typically, when the TVL on a DeFi platform rises exponentially, as observed above, new participants and existing users are adding economic value to the ecosystem. 

In evidence, many social media influencers, including Onlyfans star Vannessa Sierra, have DeFilama their Stars Arena membership and earnings via Twitter (X).   

Importantly, most services hosted within a protocol are usually denominated in the blockchain’s native token. Hence, as Stars Arena’s adoption rate skyrockets, AVAX market demand will likely increase in the coming weeks. 

Unsurprisingly, the AVAX price has already gained 10% this week. If the Stars Arena hype intensifies, AVAX could potentially rally toward $20

Avalanche Whale Transactions Skyrocketted 113% This Week

The AVAX token has recorded a significant spike in transactions this week. This further confirms the positive outlook that Stars Arena hype could boost the Avalanche native-token market demand.  

As an indication of this, AVAX  whales increased their trading activity since Stars Arena’s launch date on September 27. The chart below shows that Avalanche recorded 64 whale transactions on October 4. And in fact, the last time Avalanche whale trading activity hit this level was around August 22. 

The Whale Transaction Count metric provides a snapshot of the transactions that exceed $100,000 on a given day. Typically, an increase in whale trading activity means that large investors on the Avalanche network have received a confidence boost. 

If the Stars Arena SocialFi grows further, it’s only a matter of time before retail traders mirror the whale’s bullish disposition as well. 

Avalanche Price Prediction: $15 Could Be a Viable Target

In summary, this historical correlation between Avalanche prices and whale transactions could reoccur in the coming weeks. 

However, from a technical analysis perspective, the bears could form a major resistance sell-wall at the 11.24 region. But if the bulls can clear that resistance, the $15 territory could be the next target.