- The Avalanche Foundation accepts memecoins.
- While overall activity on the Avalanche network continues to decline, prices have fallen.
There has been a huge surge in interest in Solana (SOL) over the past few months. Much of this interest has been driven by memecoins, which are gaining popularity on the network.
Avalanche (AVAX) decided to take a page out of Solana’s book and announce that it would be investing in the memecoin sector of its network.
Going all in
Due to the uncertainty and fraudulent activities surrounding Memecoin, Avalanche has announced several criteria that will qualify you to invest in Memecoin. Some criteria include high retainer count, low concentration, and sniper bot resistance.
The Avalanche Foundation recognizes the importance of fostering and supporting community initiatives for the Avalanche, including the creativity and culture of community coins.
The Foundation has reserved part of its Culture Catalyst program to include community coins.
— Avalanche 🔺 (@avax) January 23, 2024
Even though these factors may protect users from the common pitfalls of memecoin investing, the overall state of the Avalanche network remained bleak.
In terms of daily activity, the number of daily active users has decreased from 87,000 to 53,000 over the past few weeks. Along with this, the number of daily transactions taking place on the network has also decreased.
At the time of writing, the number of transactions taking place on the network reached 276,140.
Only time will tell whether Avalanche will be able to attract new users to the protocol through memecoins in the future.
Source: Artemis
Things were not going well for Avalanche in the DeFi division either. Recent data shows that the Avalanche’s total value locked (TVL) has declined significantly over the past few days.
A significant portion of the TVL decline is due to decreased DEX volume on the Avalanche network. Declining DEX volume suggests that addresses are losing interest in Avalanche’s DEX.
Network activity decreases and interest in the DeFi sector decreases.
Source: Artemis
Read Avalanche (AVAX) Price Prediction for 2024-25
Plus, AVAX’s pricing wasn’t that great. At the time of press, AVAX was trading at $29.89, with the price down 0.52% over the last 24 hours.
AVAX’s trading volume also decreased during this period. While interest in memecoins may help AVAX temporarily, improvements across all sectors will be needed to see growth in the long term.
Source: Santiment