Avalanche Blockchain Faces NFT Congestion Crisis and Wallet Crash; Binance Halts AVAX Transactions
The ABalance blockchain network has had a tumultuous period with its rising NFT market causing significant network congestion, leading to a crash of the AVAX official wallet's frontend and forcing Binance to suspend deposits and withdrawals of AVAX. Amidst the NFT craze, particularly the DINO inscription project minting 74.19% of its supply and pushing network throughput to its limits, network income soared, at one point hitting nearly $10 million in a single day, largely from gas fees. However, the congestion resulted in a downside with increased transaction fees and maintenance issues, disrupting user activities and transfers on the network.
Bearish
The network congestion and wallet crash on the Avalanche blockchain, along with Binance's suspension of AVAX transactions, are likely to instill uncertainty and hinder trading activities for both short-term and long-term horizons. Traders may be cautious, anticipating similar events in the future until solutions are implemented to address network scalability and stability, which could lead to a bearish outlook for AVAX.