Friend.tech Rival Stars Arena Boosts AVAX Price Amid Calls That They "Will Prevail"
Transactions on Avalanche and AVAX price spike after the launch of the new SocialFi app.
By: Camila Russo •DeFi News
The Avalanche blockchain is getting a boost from Stars Arena, a new social media platform built on the network.
Transactions on the Avalanche network spiked to 585,000 on Oct. 2, up from 254,000 the previous day, marking the highest level since May, according to data from DeFiLlama.
The Avalanche token, AVAX, was up 4% in the past 24 hours at 11am New York time, according to Coingecko, the biggest increase out of all Layer 1 chains.
This surge in activity is primarily attributed to Stars Arena, a blockchain-based social media app. The game follows roughly the same model as friend.tech, with users buying each others' shares to access private chats.
Red Hot SocialFi
Friend.tech's popularity has fueled optimism that the so-called SocialFi sector will drive increased crypto adoption, a narrative that the successful launch of Stars Arena will continue to bolster.
Stars Arena's total value locked (TVL) crossed the $1M mark on Thursday, rising from less than $35,000 only a week prior, according to DeFiLlama. Stars Arena TVL still trails friend.tech's which stands at $46M according to DeFiLlama.
The rise of Stars Arena comes as a series of SIM swap attacks drained tens of thousands of dollars in ETH out of users' accounts on Friend.tech. These security breaches have raised concerns over the safety of user funds on the platform.
Stars Arena is not free from attacks, as the platform was hacked on Thursday. The team announced in a somewhat rambling post on Twitter/X that the exploit had been fixed.
"Make note of that, they were throwing money away to TAKE YOUR MONEY. They don’t want diversity. They want only monopoly," Stars Arena posted. "We will fight, we will survive, we will win. We have the devs. We have the team. We have the people. Community is the glue that binds us. We will endure. We will prevail. We will succeed."