Avalanche, a prominent Layer 1 blockchain network, is experiencing a resurgence fueled by the activities of memecoins, GameFi projects, and real-world assets (RWAs), according to recent data.
According to a report from Flipside Crypto dated February 21, memecoins native to Avalanche contributed to a surge in on-chain activity during the fourth quarter of 2023. On November 22, Avalanche recorded its highest daily on-chain transactions, reaching $6.4 million, followed by another peak of $6.3 million on December 19.
The report highlights a substantial increase in GameFi activity, leading to a more than 300% rise in daily active users on Avalanche subnets since October. From 9,994 active wallets on October 1, the number surged to 40,497 by February 7. Additionally, monthly subnet transaction counts grew by 36% since October, with January processing 19.2 million transactions.
DeFi Kingdoms, a web3 game based on Avalanche subnets, dominated daily transactions over the past four months, although it was recently surpassed by Shrapnel.
1. @DeFiKingdoms still reigns supreme – with new games closely following its lead.
For example, @playSHRAPNEL took the lead in daily transaction volume with nearly 65% of all subnet txs on Feb 6th.
Their daily active user count has grown over 420% since the new year. pic.twitter.com/mQEgwUiaWf
— Flipside 📊 (@flipsidecrypto) February 21, 2024
Furthermore, the market capitalization of RWAs on Avalanche exhibited notable growth in recent months, expanding by nearly 45% between October and February.
2. Real-World Assets (RWAs) are becoming more popular.
Daily market cap has grown ~45% since Oct, and that's just with public data (much RWA activity is on private subnets for consumer protections).@TraderJoe_xyz leads in RWA volume, with @Balancer supporting about 1/3 volume. pic.twitter.com/N3ROvUOGyu
— Flipside 📊 (@flipsidecrypto) February 21, 2024
Despite limited public data on Avalanche’s RWA ecosystem due to most protocols existing on dedicated subnets, EURC, Circle’s Euro-backed stablecoin, accounted for over 98% of RWA volume last quarter, totaling $856 million in trades. Avalanche initiated a $50 million fund in July to facilitate the acquisition of Avalanche-based RWAs.
Flipside noted that factors such as strong liquidity, increased gaming competition, substantial token burns, and the emergence of RWAs have collectively contributed to a thriving ecosystem on Avalanche.
Avalanche’s recent resurgence comes after a prolonged downturn, during which the total value locked (TVL) in Avalanche-based DeFi protocols plummeted by 92% from its December 2021 peak. However, the network’s TVL reached a high of $1.5 billion in late December after doubling in Q4, and it has since remained above $1 billion. Benqi, an Avalanche-native money market protocol, commands nearly 40% of the network’s TVL, amounting to over $550 million following a growth of approximately 250% since mid-October.
