Recent occasions linked to FTX and Alameda Research make Solana an ecosystem that was when hugely predicted would endure significant harm. This could be an possibility for opponents like Avalanche to move forward. In 2022, what has Avalanche performed and is there any probability to explode? Let’s discover out with me in this post!
Overview of the avalanche ecosystem
Project info
Currently, there are much more than 478 energetic tasks on Avalanche, which includes some major names like AAVE, Trader Joe, BenQi, 1inch…
Projects on the Avalanche ecosystem have hardly enhanced in contrast to the preceding time, but nevertheless absolutely safe vital pieces this kind of as DeFi, NFT, GameFi, DAO…
In 2022, Avalanche developed and launched Core, an all-in-a single crypto wallet product or service for Avalanche Web three end users. Core is not only a decentralized wallet, but also makes it possible for end users to optimize the working experience on Avalanche and Subnet as a result of various functions like Bridge, Swap, Payment, NFT storage, help.subnet… This can be noticed as a product or service that Avalanche has developed to help Subnet growth in the long term.
Cash movement info
Since it reached ATH in late 2021, TVL on Avalanche is down 93% (from $twelve.2B to just $834M). If we consider the milestone from the begin of 2022, that figure is 91.seven% (down from $9.97 billion, now just $834 million). It can be stated that funds movement has withdrawn nearly completely from this ecosystem.
Going deeper into the ecosystem of Avalanche, you can see that in much more than USD 830 million TVL on Avalanche, AAVE accounts for about 39.37%, equivalent to TVL of about much more than USD 328 million, the following tasks are BenQi with $180 million, Trader Joe with above $91 million. These can be viewed as as the three tasks that hold the most vital roles and positions in the Avalanche ecosystem at the minute.
About end users
As you can see, the variety of energetic accounts on Avalanche has decreased appreciably considering the fact that May 2022. In my personalized view, this largely stems from two causes:
- Avalanche itself and the tasks on it will not have ample updates to maintain end users engaged.
- Affected by the sharp drop in the marketplace a short while ago => no new traders have entered the marketplace.
Since May 2022, along with the sharp decline in the marketplace, the variety of transactions on Avalanche has also decreased appreciably. In the final three months the variety of day-to-day transactions on Avalanche has stopped reducing, but there is no indicator of constructive adjust.
Analysis of the pieces of the puzzle on Avalanche
DeFi
DEX
Previously, Trader Joe’s was a pretty “exciting” AMM when hitting TVL of above $2B, but now it really is just above $91M. Although there have been efforts to increase the product or service, in particular the drafting and building of the liquidity guide (LB) to decrease the knowing of impermanent reduction, having said that, trader Joe nevertheless faces numerous troubles in sustaining funds movement and end users.
Loan
As a loan venture mixed with liquidity staking, BenQi is at the moment dealing with numerous troubles. In terms of operational efficiency, with complete accessible capital of much more than US$131 million, BenQi is at the moment lending just above US$32 million, working with about 24% equity. This is a pretty reduced efficiency. Indeed, even the liquidity pools on BenQi reflect this with damaging APY yields.
According to statistics, stablecoins this kind of as USDC, USDT and DAI.e are nevertheless the most borrowed assets. As for volatile assets, AVAX and sAVAX (AVAX wrap tokens when you join liquid staking) are the most borrowed assets with all over USD six million and USD four million.
Liquid staking
Besides becoming a lending alternative, BenQi is also the greatest Liquid Staking venture on Avalanche.
According to information on BenQi, the complete variety of AVAX in circulation is about 415.five million tokens, of which AVAX staking volume on P-Chain is 310 million tokens, or about 74.six% The volume of AVAX staking as a result of BenQi’s liquid staking alternative is just about five million tokens, which is about one.two% of circulation. The marketplace capitalization of sAVAX is just about $59 million.
From the over information, you can see that BenQi’s liquid staking alternative has not actually attracted end users and huge organizations. Most organizations and end users who want to stake nevertheless decide on to stake right on P-Chain as an alternative of as a result of BenQi Liquid Staking. This comes from a variety of causes as follows
- After the stETH-linked incidents, traders are nevertheless afraid to use liquid staking merchandise, in particular when the sAVAX capitalization is pretty compact and vulnerable to assault.
- The yield farming gains of sAVAX are not enticing ample for end users to switch from P-chain staking to BenQi Liquid Staking.
GameFi and subnet
The cause I merged these two elements into a single is due to the fact Avalanche at the moment only has three subnets beneath building and growth, out of which there are two subnets for GameFi, DeFi Kingdom (DFK) and Swimmer Network, a single subnet for DEX is DeFi Kingdom ( DFK) and Swimmer Network Dexalot (there are fairly a number of transactions with respect to the over two subnetworks).
Realm DeFi and DFK
DeFi Kingdom is a cross-chain RPG with attractive graphics, combining standard video games with tokenization (tokenize assets and heroes in the type of NFTs). DeFi Kingdom’s JEWEL token was also “hot” at a time when the gamefi trend exploded.
Currently DeFi Kingdom has officially moved to create on the subnet termed DFK. Together we will analyze the working of this subnet:
After just about 9 months of operation, you can see that the variety of energetic wallets and transactions on the DFK subnet has remained pretty steady from September 2022 to the current. This is a constructive indicator in the context of the cryptocurrency marketplace in standard and GameFi in individual which is dealing with numerous troubles.
According to information recorded on subnet.avax.network, the variety of transactions on DFK as of December one, 2022 is 230.9 million transactions. Currently, the DFK subnet has eight energetic validators to make certain the working of the subnet. This variety is nevertheless fairly reduced, displaying restricted decentralization, which is also a typical weakness of other subnets on Avalanche.
Crabada – Swimmer’s network subnet
This is a subnet designed particularly for Crabada game – an particularly common game on Avalanche. Operating on a very similar model to Axie Infinity on Ethereum, Crabada brought numerous income to token or NFT holders in the game early on. Currently the game is also dealing with a great deal of troubles due to lack of new gamers also the rate of NFTs has dropped to reduced and is no longer ready to create income.
According to the information on the internet site https://explorer.swimmer.network/ Currently, Swimmer Network has created above thirty.six million transactions. Swimmer Network also has only 9 validators, very similar to DFK.
GameFi on Avalanche can be stated to have slowed down, but there is nevertheless a specified variety of gamers to maintain. This is demonstrated by the reality that the variety of transactions of DFK Chain and Swimmer Network is nevertheless steady. However, at this stage we will hardly discover a new and explosive venture.
NFTs
NFT is a rather lackluster section on Avalanche in contrast to other rivals like Ethereum, Near or Solana. While there are nevertheless some useful collections, the percentage is fairly compact. In my personalized evaluation, the all round high quality of NFT collections on Avalanche is not higher.
For a greater overview, let us seem at some indicators linked to NFTs:
You can see that in latest months the NFT trading volume and the variety of opening revenue have decreased “catastrophically” in contrast to the finish of 2021 and the starting of 2022. According to present information, the typical day-to-day NFT trading volume on Avalanche is about USD thirty,000 – 50,000/day. Also, there are some transactions on the Swimmer Network (subnet) but the typical volume is only around…50-a hundred USD/day.
One of the key highlights is that NFT-linked end users and transactions, even though there is a decline, but not as well a great deal. If you observe, the variety of transactions has progressively moved from C-Chain to subnets like DFK and Swimmer Network.
steady coins
You can see that funds movement pulled back pretty sharply in May 2022 and July 2022. Currently, Avalanche’s funds movement has proven no indicators of recovery.
USDC stays the greatest stablecoin by marketplace capitalization with a marketplace share of 58.29%, followed by USDT (Tether) and DAI, respectively.
Avalanche bridge
Monitoring Avalanche Bridge exercise is a single of the issues you need to do to know in which the dollars is going. As a bridge in between Avalanche and Ethereum, Avalanche Bridge has an vital significance in the movement of dollars in between these two ecosystems.
You can see that from September 2022 to the current, funds movement has largely been drawn from Avalanche. According to information as of December one, 2022, the volume withdrawn from Avalanche is USD six.six million, although the volume deposited is only USD one.four million. This is the clearest indicator of the lack of attractiveness and effectiveness of the present Avalanche.
The ultimate
From the over examination, we can draw the following conclusions:
(one) Avalanche has had some sizeable updates in the past…