Avalanche (AVAX) has recorded a massive spike in on-chain activity in June, with the 7-day moving average (7DMA) of daily transactions surpassing 1 million — marking its highest level in over a year. The surge comes amid a frenzy of ERC-404-style token minting, largely driven by activity on the high-frequency trading platform arena.trade.
Transactions Skyrocket, Fees Double
At the start of May, Avalanche averaged just 296,000 daily transactions. However, by mid-June, this number had more than tripled, climbing past 1 million daily transactions. In parallel, transaction fees have also surged, with the 7DMA of the average fee rising from 0.0035 AVAX to 0.0072 AVAX over the same period.
This trend reflects increased network congestion and rising demand, primarily due to the platform’s innovative minting mechanisms, which trigger multiple micro-transactions per action.
ERC-404 Token Minting Drives Activity
The recent spike is attributed to arena.trade, a launchpad that lets users mint and trade ERC-404-style tokens directly from X (formerly Twitter) posts. This system uses a bonding-curve model, meaning that every buy or sell interaction creates a chain of automated micro-transactions.
This high-frequency structure has mechanically inflated transaction counts, resulting in a transaction boom across the Avalanche network — even without a surge in new users.
Active Addresses Tell a Different Story
Interestingly, while transactions soared, the number of active addresses has sharply declined. After peaking at 296,000 daily active wallets in early May, the count has fallen to around 68,000 as of mid-June.
Still, May 2025 marked Avalanche’s all-time high in monthly active addresses, reaching 3.6 million — a 16.5% increase over the previous record set in December 2021.
The contrast between transaction volume and user count indicates that a smaller group of users is conducting significantly more transactions, likely driven by arbitrage, bot activity, or minting strategies tied to ERC-404 tokens.
Conclusion
Avalanche’s recent on-chain explosion highlights how innovative DeFi mechanics can rapidly impact network activity. While the user base has cooled, transactional momentum remains strong, thanks to new token standards and creative minting platforms.
As developers continue to experiment with high-frequency models, Avalanche is positioning itself as a scalable solution for the next wave of DeFi evolution.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.