Author: Nancy, PANews

In the last bull market, Avalanche, which promoted the narrative of "Ethereum killer", achieved ecological prosperity and development

In the last bull market, Avalanche, which promoted the narrative of "Ethereum killer", achieved ecological prosperity and development with the help of strategic layout in tracks such as DeFi, and its market value once ranked among the top ten. However, with the cooling of the crypto market and the intensification of competition, the momentum of this once high-performance public chain has gradually faded.

Today, Avalanche is exploring new growth paths through technology upgrades, ecological expansion and real-world applications. Although the activity on the chain has picked up recently, the turmoil in management and external market pressures have made it face considerable challenges in the overall recovery of its ecology.

On-chain activity has picked up, but it cannot hide the ecological challenges

In this round of crypto market cycle, most L1 public chains have gradually faded out of the mainstream vision, and only a few remain active. Avalanche is no exception. The overall ecological vitality of Avalanche has declined significantly compared with its peak period, and on-chain activities have gradually declined. Indicators such as total locked value (TVL), transaction volume, and user activity have fallen sharply.

According to DeFiLlama data, as of March 11, Avalanche's TVL was approximately $1.02 billion, a sharp drop of about 91.1% from its historical high. At the same time, Avalanche's daily transaction volume has dropped sharply from 6.36 million in 2023 to the current 427,000, and its daily revenue has also dropped from $9.72 million at the end of 2023 to about $60,000.

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According to DeFiLlama data, as of March 11, the total locked value (TVL) on Avalanche was approximately $1.02 billion, a sharp drop of about 91.1% from its historical high.

According to Messari data, Avalanche's daily transaction volume has dropped sharply from 6.36 million in 2023 to the current 427,000, and its daily revenue has also dropped from $9.72 million at the end of 2023 to about $60,000.

Although the decline of Avalanche's ecology is not an isolated phenomenon, but a microcosm of the overall weakness of the current crypto market, this series of data still reflects that Avalanche's economic activity is facing severe challenges.

However, recent technological and ecological adjustments have brought some signs of recovery. According to the official website data, as of March 11, the number of daily transactions on the Avalanche network reached 4.55 million this year, a record high in nearly a year. The total number of independent addresses has climbed to about 28.66 million, of which the number of daily active addresses once reached 359,000 this year, the best performance since February 2024.

In addition, data from the Avalanche official website and Staking Rewards show that as of March 13, a total of nearly 250 million AVAX were staked, with a staking ratio of 56.16%, making it the tenth largest PoS blockchain network.

In the community’s view, the recovery of data on multiple chains may indicate that Avalanche has not completely lost its competitiveness, but the full recovery of the ecosystem still faces multiple challenges. Especially when the living space of most L1 public chains is constantly being compressed, Avalanche’s recovery not only needs to rely on the improvement of the external market environment, but also requires the revitalization and breakthrough of the ecosystem.

Technology, ecology and ETF narrative resonate, internal crisis may become a hidden worry

From technology upgrades to real-world applications, to potential ETF narratives, Avalanche's recent market dynamics show that it is trying to revitalize the ecosystem through multi-dimensional efforts. However, Avalanche is also facing uncertainty due to internal governance crises and external market pressures.

On the technical level, at the end of December 2024, Avalanche announced the launch of the Avalanche9000 upgrade, which can significantly reduce the cost of deploying "subnet" blockchains and running smart contracts, while optimizing the verification mode and reducing the basic fee of the C chain (from 25 nAVAX to 1 nAVAX). And this upgrade supports independent operation of the chain through the "Etna" module, significantly reducing project startup costs and meeting different regulatory needs. It is worth mentioning that the Avalanche Foundation also raised US$250 million from investment institutions such as Galaxy Digital, Dragonfly and ParaFi Capital that month to support the upgrade deployment