AVAX surges 11% in 24 hours: Will this growth continue in 2024?
- AVAX surged by 11.03%, signaling potential opportunities for traders.
- Declining social volume and sentiment raised fears for AVAX’s future.
Avalanche [AVAX] emerged as a standout performer among altcoins in the early days of the new year, showcasing impressive price growth. As of the latest data, AVAX was trading at $36.68.
In the last 24 hours, it had experienced an impressive surge of 11.03%.
A sudden spike
This sudden surge in AVAX’s price can generate both positive and negative implications for traders.
On one hand, the substantial price growth presents an opportunity for profit, but on the other hand, it raises concerns about potential market volatility and corrections.
However, recent developments indicated that things were more complicated than they seemed on the surface. Notably, despite AVAX’s positive momentum, Social Volume witnessed a significant decline in the past few days.
The Weighted Sentiment surrounding AVAX also fell during this period, signaling a rise in negative comments within the community. This shift in social dynamics could influence traders’ perceptions and impact AVAX’s trajectory.
If Weighted Sentiment continues to stay negative, retail interest in AVAX could be affected, which may bring down the price of the token going forward.
Source: Santiment
Burning up!
In addition to the above developments, the Avalanche network also experienced a massive increase in token burns during transactions, leading to a substantial reduction in circulating supply.
AVAX burns reached a peak in Q4 2023, with December witnessing 195,000 token burns, a significant uptick compared to previous patterns.
Source: AVASCAN
This surge in AVAX token burns could be attributed to the growing prevalence of Inscription-related transactions on Avalanche and other blockchain networks.
Initially rooted in Bitcoin [BTC], Inscription-based transactions now contribute significantly to transaction fees and subsequent token burns on Avalanche.
Read Avalanche’s [AVAX] Price Prediction 2024-25
Data from a Dune Analytics dashboard indicated that Inscriptions-related transactions constituted over 75% of transaction fees and 90% of transactions during peak times.
Source: Dune Analytics
Thus, the continued prominence of Inscription-related transactions, along with AVAX’s token burns and its distinctive fee mechanism, could play a pivotal role in shaping AVAX’s trajectory for 2024.
