Avalanche Makes a Move: Web Wallet Shutdown Raises Staking Questions

Avalanche has taken significant strides toward evolving its digital asset management and staking environment by discontinuing its traditional web wallet. The decision aligns with the platform’s transition towards Core Stake, a more advanced and feature-rich platform designed to offer a holistic and enriched user experience.

This move is set to redefine how AVAX stakers engage with the network, promising enhanced security, user autonomy, and a range of staking options. The end of the web wallet, effective from 11 am ET on March 6, marks the beginning of a new chapter for Avalanche and its community.

Embracing Core Stake

Avalanche has assured its users that the transition to Core Stake will be seamless, requiring no immediate action from the stakers’ end. This shift is not just about changing platforms but is a step forward in Avalanche’s commitment to bolstering a secure, efficient, and user-friendly staking ecosystem.

Core Stake stands out by offering direct staking to Avalanche’s validating node, circumventing the need for third-party dApps or protocols, thereby granting stakers unprecedented control over their assets. This control extends to the preferences in staking duration, amount, and delegation fees, offering a customized staking experience.

The Evolution of AVAX Staking

The move to Core Stake comes when staking increasingly becomes a central aspect of the Avalanche network’s operations. Staking not only secures the network and processes transactions but also offers rewards to stakers for their contribution. With 57% of AVAX’s circulating supply currently staked, reflecting a 17% increase in the past month, the platform’s growth and staker engagement is evident.

However, the transition raises questions about the future of staking rewards, which have recently decreased to 8.51%. The transition to Core Stake aims to address these concerns by providing a more robust and feature-rich staking environment.

Enhancing Ecosystem Cohesion with Teleporter

In addition to the wallet transition, Avalanche has launched Teleporter, a tool aimed at unifying the network’s various subnets and improving communication across its ecosystem. This development, built on Avalanche Warp Messaging (AWM), promises to enhance the interoperability among Avalanche’s application-specific chains, thus addressing fragmentation within the network.

Teleporter’s introduction will facilitate a smoother exchange of data types like tokens, NFTs, and oracle price feeds across subnets, further solidifying Avalanche’s position as a cohesive and integrated platform.

After the announcements, the Avalance (AVAX) market experienced a bullish rally after support at the intra-day low of $39.00 was established. Bulls soared the AVAX price to a 24-hour high of $43.86 before facing resistance. However, despite the resistance, at press time, AVAX was up 6% from the intra-day low, trading at $43.09.

AVAX/USD Technical Analysis

The Moving Average Convergence Divergence (MACD) trend on the AVAX/USD 4-hour price chart rating of 0.0109 and shift above its signal line indicate that bullish momentum is rising, implying a likely rally in the near term. This trend is further corroborated by the MACD histogram, which shows positive divergence and confirms the bullish trend. Furthermore, rising trading volume on AVAX/USD pairs suggests increased investor interest in the asset.

AVAX/USD 4-hour price chart (source: TradingView)

Furthermore, the Money Flow Index (MFI) rating of 60.40, which is above the 50 level, adds to the optimistic feeling by signaling buying pressure. This level of MFI indicates that there is still a possibility for price appreciation before hitting overbought territory. If the MFI continues to rise and remains above 70, it could indicate strong buying momentum and the potential for more significant price gains shortly.