Avalanche (AVAX), a strong contender to Ethereum (ETH), experienced a significant surge in on-chain activity during the second quarter of 2023, as reported by the reputable crypto data firm Nansen.
The project’s primary smart contract blockchain, Avalanche’s C-Chain, saw a remarkable increase in daily transactions, ranging from 200,000 to 550,000 throughout the entire Q2. These figures represent nearly double the volume of daily transactions observed in the previous quarter.
Moreover, Nansen’s analytics indicated a steady growth in the number of daily active addresses on Avalanche’s network, reaching a peak of 117,304 on June 14th.
This continuous rise in active addresses, along with the surge in daily transactions, serves as a clear indicator of the ecosystem’s healthy expansion and the flourishing community supporting Avalanche.
However, the surge in on-chain activity did not reflect positively on AVAX’s price during Q2. The 19th-ranked crypto asset by market cap faced a decline from trading around $17.79 at the beginning of April to $13.02 at the end of June, experiencing a decrease of nearly 27%.
As of the current writing, Avalanche’s native token is trading at $12.40, which highlights the fluctuations and volatility that the cryptocurrency market often experiences.
Additionally, decentralized finance tracker DeFi Llama reported that Avalanche’s total value locked (TVL) witnessed a decrease from $867 million on April 1st to $693.94 million on June 30th, reflecting a decline of nearly 20%. At the moment, the platform’s TVL stands at $608.82 million.
The TVL of a blockchain is an essential metric, representing the total capital held within its smart contracts. It is calculated by multiplying the amount of collateral locked into the network by the current value of the assets.
Despite the price fluctuations and TVL drop, Avalanche’s increased on-chain activity and growing number of active addresses provide a strong foundation for its continued growth and development in the competitive blockchain landscape. Investors and enthusiasts continue to keep a close eye on the platform’s performance and its potential to disrupt the industry further.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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