The ERC-404 craze drives Avalanche transactions to surpass 1 million.

Gate News bot message, in recent weeks, the on-chain volume of Avalanche has surged, with its 7-day moving average (7DMA) on-chain trading volume reaching 1 million transactions, marking the highest level in over a year. In contrast, at the beginning of May, this number was only 296,000 transactions, indicating that it more than doubled in less than two weeks to reach 696,000 transactions, followed by a significant drop and slowdown at the end of the month.

However, as June approaches, the on-chain volume of Avalanche has seen explosive growth, with the 7-day moving average (7DMA) increasing from 400,000 transactions on May 31 to over 1 million in just two weeks. The increase in volume is reflected in the 7-day moving average of on-chain average transaction fees, which has doubled from 0.0035 AVAX in early May to 0.0072 AVAX at the time of writing.

It is worth mentioning that the number of active addresses on Avalanche (7DMA) surged in May, increasing from 40,000 to 296,000 in the first half of May. This led Avalanche to set a historical high for the number of monthly active addresses, totaling 3.6 million in May, which is 16.5% higher than the previous record of 3.09 million set in December 2021. However, since the beginning of May, the number of active addresses on Avalanche has significantly declined, and as of the writing of this article, it is only 68,000.

Considering the surge in volume in June, but the number of active addresses did not increase accordingly, it can be inferred that the spike in volume in June was driven by a smaller user group trading more frequently on exchanges, rather than new wallets coming in, most likely catalyzed by arena.trade. arena.trade is a token issuance platform that allows users to mint tradable ERC-404 tokens directly from X posts using a joint curve mechanism.

Source: The Block