Take a look at Ethereum and Solana and their failings in the last few days. Both platforms experienced performance problems last weekend. High demands for the sale of NFTs temporarily halted transactions on both platforms.
Blockchain providers are locked in a fierce competition to outperform one another. Therefore, for efficiency, new implementations are constantly deployed.
Likewise, to aid the proper functioning of the Avalanche Blockchain, Orachain, an artificial intelligence-powered blockchain ecosystem supplier announced the launch of its VRF (verifiable random function) on the Avalanche blockchain.
This will allow Avalanche developers to benefit from a truly decentralized, publicly verifiable random number generator that’s impervious to attack, delivering enhanced functionality to dApps. Now you might wonder, in light of this development, how did Avalanche’s native token, AVAX react?
Here’s the answer
A consideration of the price performance for the token in the last 24 hours did not reveal any significant growth. Standing at $60.47 at the time of writing, the AVAX token declined by 2% within the last 24 hours.
This showed that despite the announcement, investors did not appear to have been moved. In fact, the last seven days were plagued with a significant decline in the value of this token. Shedding 14% of its price within this period, the token appeared to have seen better days. Standing at 33.45 and 27.52 respectively, the RSI and MFI were indicative of significant bearish bias.
Source: TradingView
Also on a free-falling campaign was the trading volume for the token within the last 24 hours. At $553.13b at the time of this writing, the trading volume for AVAX declined by over 30%. Such a significant decline in trading volume following the Orachain’s announcement indicated that investors were not impressed enough to accumulate the native token.
Even more woes for this token
In face of Orachain’s announcement, one might expect significant uptrends on a social front for AVAX. However, this was not the case. Standing at 0.32% at the time of this press, the social dominance for AVAX has been marked by a decline in the past five days.
Also, following a similar trend of steady decline, the social volume stood at 58 at the time of this press. These indexes indicate that Orachain’s announcement garnered barely any impact for the AVAX token on a social front.
Source: Santiment
On a developmental front, the development activity for AVAX declined by 6% in the past 10 days. Standing at 58 at the time of writing, no significant impact is expected on this front by Orachain’s announcement.
Development Activity Contributor’s Count also stood at one on 3 May after recording a high of 10 in the last two days.
Source: Santiment
At the crux of the promise of complete decentralization is limited or no downtimes on decentralized blockchains. This has been discarded as a problem dominant on web2 platforms. However, with increased downtimes on blockchains like Solana and Ethereum, we are far from actualizing this promise.