Avalanche's [AVAX] growth can come to a halt if these factors are not addressed
However, this surge in activity and TVL could be slowed down by Avalanche’s decline in daily activity. At press time, the number of daily active users on the network decreased by 4.87%.
Along with that, the number of new users signing up to the network also fell. It plunged from 161,300 to 154,980 in the last month.Much to the surprise of the network, even stakers started to lose interest in Avalanche., the number of stakers on the Avalanche network declined materially. Not to forget, a decline in the number of users staking AVAX could not only harm the network but the token holders as well.Meanwhile, Avalanche’s NFT market also suffered over the last few days.
Many of AVAX’s blue chip NFT collections underperformed in the last month. This could be one of the reasons why there was a lack of ample activity on the network.Evidently, the lack of interest in the NFT market also impacted the AVAX token. According to data provided by Messari,Source: Messari Overall, even though Avalanche has shown growth in terms of TVL, it has still many challenges to overcome in areas such as the NFT sector and staking.
If the decline in activity on the network is not checked, it could cause harm to Avalanche’s growth in the long run.Subscribe to get it daily in your inbox.
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