Will AVAX Gains Close Above 100%? Weekly Burned Tokens At Highest, New Partnerships On Record

Avalanche AVAX/USD may reach a triple-digit surge for December due to highest-ever burnt transactions and new partnerships.

What Happened: Ranked at number nine in the top 20 cryptocurrencies, Avalanche is sitting at gains of 85% in last month's trading session, compared to 15% in Bitcoin BTC/USD gains and 12% in Ethereum ETC/USD.

Trading volume in the past 24 hours witnessed a 21% increase. Based on Avascan data, the network reported 6.87 million in daily transactions compared to 3 million reported as of Dec. 12.

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Avalanche Of Burns: Last week, Avalanche users saw 439,000 tokens burnt worth $16.7 million. That far exceeds the burn of 85,000 tokens at the end of November 2023 and 40,000 AVAX two weeks later, reported by TheBlock.

To date, 3.4 million AVAX tokens have been burnt through transactions valued at $129 million. The surge in the burn was led by the rise of inscriptions across Avalanche and other blockchains.

Avalanche reported a payment of $13.8 million in transaction fees over the past five days trading for minting and moving tokens and NFTs that are created with inscriptions, based on Dune Analytics dashboard. 

Transaction fees peaked at as high as $5.6 million per day. The total fees account for around 70% of all fees spent on inscriptions across all blockchains tracked by the dashboard.

Avalanche is ranked third in processing of inscription-related transactions with 61 million. Polygon PoS and BNB Chain report 161 million and 77 million transactions respectively.

New Partnerships: The week started with Masa announcing the launch of its ZK-data network and marketplace for building an open, secure, and incentivized economy for the world’s personal data.

Prioritizing gas cost as the main point, Masa will build the network on Avalanche using AvaCloud enabling “high throughput of transactions and powers use cases that consume high volumes of private data — all at a low cost.”

The launch is scheduled for the first quarter of 2024.

“Avalanche is the ideal launchpad for custom blockchains, having launched 14 custom blockchains by games, governments or enterprises. This is the perfect architecture to support our ZK-Data network and marketplace,” Masa co-founder Calanthia Mei said.  

Risk Factor: At the time of writing, AVAX is trading 1.6% down for the past 24-hour time frame. CoinEdition reports that based on technical, AVAX price may drop in the upcoming few days. Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators also signal bearish movement.

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Image: Wikicommons