How does Avalanche$AVAX stand out from the crowd? Read this article for fans of Avalanche Protocol.
The underlying technology of Avalanche (Avalanche Chain) makes it one of the fastest blockchains by building an innovative consensus mechanism. The rules of the custom network of the Avalanche Chain subnet make Avalanche Chain have the potential for large-scale commercial use by B-end customers. At the same time, Avalanche Chain is also actively promoting the construction of ecology and subnets. The cooperation and incentive plan between institutions and ecology of Avalanche Chain has brought considerable gains to the ecology.
Key data of the current avalanche ecology:
Avalanche has 592,000 active addresses on the 30th (7 million for Ethereum and 330,000 for Terra).
After Avalanche launched a $180 million liquidity mining plan in August last year, the total locked value (TLV) ushered in an explosive growth, and the current TVL reached $10.3 billion, ranking fourth.
Avalanche Bridge, the official cross-chain bridge between Avalanche and Ethereum, ranks 2nd with 22.3% of all Ethereum bridge TVLs.
In March this year, the Avalanche Foundation announced the launch of the Subnet Incentive Program, which directly pushed the Avalanche network pledge rate to 50.65%.
There are 174 avalanche ecological DeFi projects, and the ecological games Crabada, Imperium Empires, and Ascenders all have high popularity.
The current market capitalization of $AVAX is $25.3 billion, and the FDV is $37.4 billion. Last September, $AVAX was listed on Coinbase, giving its tokens better liquidity and value endorsement.
First, the underlying technology
1. The innovative consensus mechanism of Avalanche Chain makes it one of the fastest blockchains and has the function of customizing sub-networks.
Avalanche Chain's three-chain technical architecture (transaction chain X-Chain, contract chain C-Chain, platform chain P-Chain) has different division of labor, is interoperable, belongs to the alienated network architecture, and adopts DAG (directed acyclic graph) data structure Optimized the PoS consensus mechanism.
Avalanche Chain has low latency, high throughput, and strong scalability. Competitive levels of decentralization can be achieved without sacrificing performance.
The subnet structure of the P chain can achieve part of the performance of the concept of "parallel chain", and assets can be transferred between subnets. The subnet can customize the rules of the network to make the chain more suitable for its own business, which also makes the subnet more closely related to the B-side cooperation.
2. The development of Avalanche Chain has a fast growth rate, rich ecology, and high activity of addresses on the chain.
In 2021, the developers of Avalanche Chain will increase by 3 times, and the development activity will be high.
The existing ecology is relatively rich. As of February 2022, there are more than 1,200 mainnet verification nodes, and more than 400 projects have been developed in the ecology. DeFi, NFT, and GameFi are the main driving forces for the growth of ecological data.
The Avalanche Chain cross-chain bridge promotes the explosion of DeFi lock-up volume. Combined with the official liquidity mining reward plan, TVL data has grown rapidly.
The total number of addresses on the Avalanche C chain reached 2.154 million, and the number of active addresses reached a peak of 800,000 in January, and TVL showed a rebounding trend; as of March, the total transaction volume of the Avalanche C chain exceeded 100 million.
2. Ecological progress
1. The cooperation between institutions and ecology of Avalanche Chain brings considerable benefits to the ecology.
Avalanche Chain actively cooperates with institutions, including project parties such as SushiSwap and Aave, which brings benefits in many aspects such as community increment, media discussion, and ecological expansion. It is expected that the positive impact of Avalanche's on-chain data and ecological cooperation will still support its market value recovery.
The on-chain data growth of Avalanche Chain mainly comes from the C chain. At the same time, the data performance of the C chain also affects the market's expectations for the P chain (platform chain). In March 2022, the Avalanche Foundation announced the launch of the Subnet Incentive Program, which directly drives the staking rate of the Avalanche network to 50.65%.
2. The ecological status of Avalanche Chain
DeFi field
The Avalanche ecosystem now supports 174 DeFi projects.
The top ten projects in TVL are: AAVE, Trader Joe, Curve, BenQI, Platypus Finance, Multichain, Alpha Finance, Wonderland, Yield Yak, Beefy Finance.
AAVE accounts for 29.52%, and Avalanche native projects account for more than 40%.
NFT field
As an NFT trading platform on the Avalanche chain, Kalao aggregates all available NFTs on the Avalanche C chain.
ToppsNFTs, as a well-known platform for football cards and souvenirs, migrated from the WAX ​​blockchain to the Avalanche Chain.
Gamefi
Crabada, Imperium Empires, Ascenders, and DeFi Kingdoms are all GameFi projects with high popularity in the ecosystem.
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3. Ecological support
Actively support ecological construction, and support a wider range of topics than other public chains. From December 2021 to early March 2022, the Avalanche Foundation and the Web3.0 development platform Moralis will jointly conduct its largest hackathon, with the aim of accelerating the development of DApps, Web3 applications and DeFi projects within the ecosystem.
Compared with other public chains, Avalanche Chain ecologically supports a wider range of hot topics. In addition to hot tracks such as DeFi and NFT, Avalanche Chain also focuses on enterprise-level applications and Web3.0 applications. The number of projects in these tracks is relatively high. Increase, can further strengthen the recognition of the avalanche chain ecology.
Actively promote the construction of subnets. In March 2022, the Avalanche Foundation announced the launch of the "Avalanche Multiverse" incentive program, providing a total of 4 million AVAX Tokens worth about $290 million to drive the increase in subnets. At the same time, Ava Labs, one of Avalanche's core developers, also provides assistance and support for subnet development.
4. Inter-agency cooperation
Avalanche Chain has dominant resources in enterprise-level cooperation. Due to the impact and narrative of inter-firm cooperation. It is expected that non-blockchain-native enterprise-level institutions will adopt the AVAX subnet as a blockchain development network, and this direction may become the next narrative focus of Avalanche.
Well-known cooperation cases include: cooperating with well-known sports star cards and souvenir companies to issue NFTs; integrating with coin-operated institutions in the field of digital securities issuance in the United States to support the issuance of digital securities; with a digital payment platform with 4.5 million users in traditional fields Wirex cooperation; cooperation with Deloitte to build a high-efficiency and low-cost disaster relief platform, etc.
As stated in the Avalanche Chain white paper, although the core operating mechanism of Avalanche Chain is very simple, these protocols bring about very ideal system results, making them suitable for large-scale deployment. However, because Avalanche Chain once triggered a cross-chain function error due to the high load caused by the influx of large traffic, and the current number of subnets is small, can Avalanche Chain become the best platform for hundreds of millions or even billions of users to access the cryptocurrency economy , remains to be seen. But judging from the current ecological support and achievements, Avalanche Chain has already walked on this road.
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Reference article:
https://www.chaincatcher.com/article/2071663
https://mp.weixin.qq.com/s/1zK0s3LckuzxHzAz3FRvnw