Avalanche and its race to become the “core hub of DeFi”
There have been some recent announcements and additions to the Avalanche ecosystem which has led to a surge in its native token AVAX.
Smart contract platforms have seemed to be front and center in the past few weeks. Among this list is Avalanche, which has shown an impressive price journey over the last month. Avalanche added a slew of protocols that helped kick off the price rally.
Let’s break these down.
Avalanche mainnet recently activated Phase Four of the Apricot Upgrade (“AP4''), introducing Snowman++ ( reducing MEV & contention in the network), C-chain fee reduction & Block based fees.
Meanwhile, @CurveFinance & @AaveAave have been added to Avalanche. As more & more projects are getting deployed on the network, the Avax community is getting stronger. This sudden increase in traction can be clearly attributed to their incentive program - Avalanche Rush.
Here is an analysis of how the activity has increased exponentially since the launch of Avalanche Rush.
Total Value Locked On Avalanche has increased by 9000% from $312M to $3.12B. $2.6B has been crossed over from Ethereum to Avalanche since the bridge launched in June. Notably, 136,011 out of 137,971 bridge transactions have been processed since August 18, when Avalanche rush was announced.
Deposits from Ethereum have significantly outperformed withdrawals from Avalanche to Ethereum validating the fact that a lot of liquidity has been flowing from Ethereum network since the launch of Avalanche rush.
Users and transactions count
Daily transactions count has increased exponentially from 50K reaching over 200K. This also points towards the fact that the more these transactions are made the more the fees are burned. Monthly active users have also increased significantly in the last 2 months.
Projects being added on Avalanche
Avalanche Rush has caused lots of projects to move on avalanche, bringing in more users, liquidity, and traction on the platform. This growth should continue, as the DeFi sector’s leading projects like Aave and Curve will be deployed to the network bringing in more rush.
$AVAX has also skyrocketed due to strong fundamentals from $23 to $79.31 and gained 243%. Meanwhile, market capitalization has more than quadrupled from $4B to $16.3B standing at #11th position.
Endnote
Avalanche is set to be the next big thing because of the strong fundamentals like higher transaction speed, blazing fast transaction finality, high degree of decentralization and strong projects coming to the network. Incentive programs have been launched by many blockchains but avalanche looks pretty successful looking at all above metrics.