Discover the ripple effect Stars Arena had on AVAX's market dynamics and the stark downturn in crypto fundraising in today's unfolding stories.
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Stars Arena Boosts AVAX Price and Network Activity

Stars Arena Boosts AVAX Price and Network Activity

Discover the ripple effect Stars Arena had on AVAX's market dynamics and the stark downturn in crypto fundraising in today's unfolding stories.

Date:
Oct 6, 2023
| Issue
#
120

Welcome to today’s edition of Datawallet Daily. Here are the key stories that are shaping the crypto landscape over the last 24 hours:

  • Stars Arena boosts AVAX price and network activity
  • Crypto fundraising hits 3-year low
  • Polygon loses its third key executive this year
  • Elliptic’s report shows $7 billion was laundered through DEXs cross-chain bridges and coin swaps

Before diving into Stars Arena and the latest stories of the day, let's take a quick look at market price action.

Stars Arena boosts AVAX price and network activity

The Avalanche ecosystem is buzzing with the rise of new decentralized social media (DeSo) app, Stars Arena. Drawing inspiration from Friend.Tech, Stars Arena offers a playground for users to buy "shares" of social accounts, unlocking special privileges. But it adds a new twist with a public feed, fostering more open interactions. This fresh take has not only caught the eye of the online community but also spurred a notable rise in AVAX's price and on-chain transactions.

The ripple effect of Stars Arena's arrival was immediate. Avalanche's C-Chain saw daily transactions soar by 186% over a mere two days, propelling the AVAX token price up by over 8%. And it's not just a flash in the pan. The platform quickly racked up over 10,000 unique active wallets and boasted a total trading volume of over $3.26 million. While its total value locked (TVL) of $1 million lags behind Friend.Tech's hefty $44.27 million, the pace of growth signals a promising start.

Despite early glitches such as laggy chats and an undisclosed development team, Stars Arena's debut underscores the escalating allure of DeSo apps. It emerges as a new player in the expanding field of social finance platforms, sparking renewed interest in the AVAX ecosystem by highlighting the high throughput & low-latency that the Avalanche C-Chain enables.

Crypto fundraising hits 3-year low

According to blockchain intelligence firm Messari, fundraising in the cryptocurrency industry experienced a significant decline in Q3, reaching its lowest level in three years. The report states that crypto firms raised just under $2.1 billion across 297 deals during this period, marking the lowest amount raised since Q4 of 2020. 

This decline in fundraising follows a peak in Q1 of 2022 when over $17.5 billion was raised across more than 900 deals. As the year progressed and conditions in the crypto industry deteriorated, culminating in the sudden collapse of exchange FTX in November, fundraising returns diminished. However, Q1 and Q2 of 2023 saw relatively stable fundraising, with approximately $7.5 billion raised across about 200 deals in each quarter, similar to the numbers seen in Q4 of 2022. Nevertheless, both the amount raised and the number of deals experienced a decline of 36% in Q3.

Polygon loses its third key executive this year

Polygon, the Ethereum layer-2 scaling solution, is experiencing a departure of several team members. The most recent departure is Jaynti Kanani, one of the co-founders who played a crucial role in establishing the company in 2017. In a post on X, Kanani revealed that he has reduced his involvement in the day-to-day operations of Polygon about six months ago. Kanani expressed his intention to explore new opportunities while continuing to support and contribute to Polygon from a supportive position on the sidelines.

Elliptic’s report shows $7 billion was laundered through DEXs cross-chain bridges and coin swaps

In October, when Elliptic released their initial annual report, they made a prediction that the amount of money being laundered through decentralized exchanges (DEXs), cross-chain bridges, and non-KYC exchange services (known as coin swaps) would reach $6.5 billion by the end of 2023.

However, surpassing their original estimate, Elliptic has now revealed that a staggering $7 billion of "illicit or high-risk funds" have already been laundered using "cross-chain and cross-asset services." Interestingly, Elliptic's latest report indicates that this significant amount had already been reached as of July of this year.

Other breaking news

Wrapping up

Today's issue delved into the splash made by Stars Arena in the Avalanche ecosystem, boosting AVAX's price, juxtaposed with the sobering reality of crypto fundraising hitting a 3-year low. These tales of triumph and tribulation reflect the diverse narratives unfolding within the crypto realm. We're keen on keeping the discourse going and shedding light on these evolving stories. Stay tuned for the next issue of Datawallet Daily, where we'll continue to provide crucial updates and delve deeper into the dynamics shaping the crypto world.