{"id":33020,"date":"2023-11-23T02:52:40","date_gmt":"2023-11-23T06:52:40","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=33020"},"modified":"2023-11-23T02:52:40","modified_gmt":"2023-11-23T06:52:40","slug":"avalanche-c-chain-burning-12-65-of-avax-every-second-what-does-it-mean-for-price","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/11\/23\/avalanche-c-chain-burning-12-65-of-avax-every-second-what-does-it-mean-for-price\/","title":{"rendered":"Avalanche C-Chain Burning $12.65 Of AVAX Every Second, What Does It Mean For Price?"},"content":{"rendered":"

Taking to X on November 22, one user, @kevinsekniqi,\u00a0notes<\/a> that the Avalanche C-Chain is burning roughly $12.65 of AVAX every second, a development that could be a massive boost for AVAX in the long term. <\/p>\n

The surge in AVAX burning on the C-Chain is primarily due to the launch of inscriptions, which permit storing data on the Avalanche\u2019s C-Chain, pushing the number of AVAX being taken out of circulation.\n<\/p>\n

Avalanche Burning AVAX At Record Pace<\/h2>\n

@kevinsekniqi estimates that if the burn rate is maintained at spot rates, it could see approximately $400 million of the coin taken away from circulation. This could be a significant figure supporting AVAX bulls long-term since reducing supply at constant demand would naturally lead to price gains.<\/p>\n

The heightened activity in recent days stems from the over<\/a> 2.3 million daily transactions tied to users creating and transferring \u201cASC-20\u201d tokens to inscribe data permanently onto Avalanche\u2019s C-Chain. On average, the Avalanche C-Chain processes around 450,000 transactions daily. However, this figure has been changing in recent days, reading from on-chain data. <\/p>\n

On-chain activity<\/a> is up roughly 4X due to inscriptions, driving the network\u2019s revenue as gauged by gas fees collected.<\/p>\n

Through inscriptions, new use cases, as demonstrated in Bitcoin, around provable ownership and identity have emerged. Since Avalanche is a public ledger maintained by distributed validators operating nodes, gas fees must be paid. Part of the gas is burnt as part of Avalanche\u2019s structure.<\/p>\n

FTX Group Selling AVAX, Bulls Dominant<\/h2>\n

It is not immediately clear how the spike in the number of inscriptions on the C-Chain will impact prices. Though more inscriptions could support bulls, other external market factors should be considered.\u00a0<\/p>\n

According to Scopescan\u00a0data<\/a>, FTX Group, a team tasked with managing FTX estate, recently sent 916,780 AVAX worth $20.7 million to Binance. Transfers to centralized exchanges are often interpreted as bearish. Following this, AVAX prices fell by 13% on November 21.\u00a0<\/p>\n

Prices remain stable, and AVAX maintains an uptrend despite prices contracting this week. Looking at the developments in the daily chart, the coin roared 190% from October 2023 lows. It peaked at around $16 in November.\u00a0<\/p>\n

<\/a><\/p>\n

At present, prices have cooled off, dropping by approximately 18%. Nonetheless, the uptrend remains. Any break above $16 could spur more activity, even lifting the coin towards August 2022 highs of around $30.\u00a0<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

Taking to X on November 22, one user, @kevinsekniqi,\u00a0notes<\/a> that the Avalanche C-Chain is burning roughly $12.65 of AVAX every second, a development that could be a massive boost for AVAX in the long term. <\/p>\n

The surge in AVAX burning on the C-Chain is primarily due to the launch of inscriptions, which permit storing data on the Avalanche\u2019s C-Chain, pushing the number of AVAX being taken out of circulation.\n<\/p>\n

Avalanche Burning AVAX At Record Pace<\/h2>\n

@kevinsekniqi estimates that if the burn rate is maintained at spot rates, it could see approximately $400 million of the coin taken away from circulation. This could be a significant figure supporting AVAX bulls long-term since reducing supply at constant demand would naturally lead to price gains.<\/p>\n

The heightened activity in recent days stems from the over<\/a> 2.3 million daily transactions tied to users creating and transferring \u201cASC-20\u201d tokens to inscribe data permanently onto Avalanche\u2019s C-Chain. On average, the Avalanche C-Chain processes around 450,000 transactions daily. However, this figure has been changing in recent days, reading from on-chain data. <\/p>\n

On-chain activity<\/a> is up roughly 4X due to inscriptions, driving the network\u2019s revenue as gauged by gas fees collected.<\/p>\n

Through inscriptions, new use cases, as demonstrated in Bitcoin, around provable ownership and identity have emerged. Since Avalanche is a public ledger maintained by distributed validators operating nodes, gas fees must be paid. Part of the gas is burnt as part of Avalanche\u2019s structure.<\/p>\n

FTX Group Selling AVAX, Bulls Dominant<\/h2>\n

It is not immediately clear how the spike in the number of inscriptions on the C-Chain will impact prices. Though more inscriptions could support bulls, other external market factors should be considered.\u00a0<\/p>\n

According to Scopescan\u00a0data<\/a>, FTX Group, a team tasked with managing FTX estate, recently sent 916,780 AVAX worth $20.7 million to Binance. Transfers to centralized exchanges are often interpreted as bearish. Following this, AVAX prices fell by 13% on November 21.\u00a0<\/p>\n

Prices remain stable, and AVAX maintains an uptrend despite prices contracting this week. Looking at the developments in the daily chart, the coin roared 190% from October 2023 lows. It peaked at around $16 in November.\u00a0<\/p>\n

<\/a><\/p>\n

At present, prices have cooled off, dropping by approximately 18%. Nonetheless, the uptrend remains. Any break above $16 could spur more activity, even lifting the coin towards August 2022 highs of around $30.\u00a0<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-33020","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/33020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=33020"}],"version-history":[{"count":1,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/33020\/revisions"}],"predecessor-version":[{"id":33031,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/33020\/revisions\/33031"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=33020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=33020"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=33020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}