Arweave sees a flood of network activity in conjunction with buoyant price action.
Arweave posted a 9% gain over the last 24 hours to $11.52, marking a 12-week high.
The price spike was accompanied by a tweet from Arweave co-founder and CEO Sam Williams, who said the chain had experienced its highest-ever monthly transaction count in January.
The tweet included a chart showing the number of transactions reaching over 58.2 million last month; Williams said this is up 80% over the previous month and 21% higher than during the “NFT bull market peak.”
Since the June 2022 low of approximately 12 million, transactions have been rising sharply, with January seeing a near-vertical increase in transaction count.
When asked what is behind the jump in activity, Williams said he is not entirely sure but thinks it may be due to a “new significant user” joining the ecosystem around Jan. 14.
“Can’t be 100% sure, but it looks like a new significant user coming online. From Viewblock we can tell that it is:
A. Coming from Arweave signing wallets (rather than SOL/ETH that NFT uploaders generally use)
B. Using bundles
C. Started on ~Jan 14
Looking for more details”
AR on a roll
Arweave year-to-date gains come in at 86%, having formed a local bottom at $6.147 on Dec. 31, 2022.
Since the start of the new year, a strong run, including nine consecutive daily green closes between Jan. 6 and 14, has lifted AR higher.
Resistance at the $9.90 zone was tested and rejected three times before breaking out and closing above that level on Jan. 25.
Edging higher over the subsequent days, AR was rejected at $12.20 on Feb. 1. The token remains significantly adrift from its pre-FTX price of $17.95.
Despite AR’s strong run of form since the start of the year, like most altcoins, the token has been carrying a significant percentage drawdown since the November 2021 market top. At the current price, AR is down 87% from its $89.24 ATH price, achieved on Nov. 5, 2021.
What is Arweave?
Arweave is a decentralized permanent storage solution that aims to preserve “humanity’s most important data.”
This use case has found favor with NFT artists and collectors who seek to save their digital art on the network. With Ethereum and Solana being significant NFT chains, Arweave has built integrations with these chains to incorporate the NFT process, including marketplace integrations for NFT trading.
Source : cryptoslate