Analyzing the role of BTC.b vis-à-vis Avalanche’s advancements
- BTC.b witnesses a surge in activity on the Avalanche network.
- DeFi dApps such as TraderJoe and BenQi benefit from this interest in BTC.b.
Over the past few months, there has been increasing interest in BTC.b, which is a wrapped version of Bitcoin that runs on the Avalanche network.
The increasing adoption of BTC.b in the DeFi market could prove to be advantageous for Avalanche going forward.
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The interest in BTC.b was showcased by the spike in daily active addresses that have been using BTC.b for DeFI purposes on the Avalanche network.
Cause I’m dAppy
Many holders of BTC.b have turned to dApps on the Avalanche network so that they can use their holdings in the DeFi market. As a result, dApps such as Trader Joe and BenQi have been seeing significant improvements in their performance.
According to Dapp Radar’s data, the number of active wallets on both the aforementioned protocols surged by 46% and 33% respectively.
In addition, Trader Joe experienced a surge of 139.77% in trading volume, which led to a corresponding increase in the number of transactions taking place on the platform.
These developments also led to an increase in activity on Avalanche’s subnets. Avalanche subnets refer to smaller, independent networks that operate within the larger Avalanche network.
These subnets are designed to have their validators and blockchains, which can operate and transact in parallel with the main Avalanche network.
Notably, the increased usage of Avalanche subnets contributed to the network’s gas usage as well.
Avalanche Subnet Weekly Stats
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The public sentiment
However, the layer 1 blockchain faced challenges in other areas.
For instance, on the social front, the social mentions for Avalanche declined by 10.71% in the last week, along with social engagements, which fell by 8.24%.
Coupled with that, the weighted sentiment for Avalanche also decreased, indicating that the crypto community’s outlook towards Avalanche had turned negative.
These factors also ended up impacting Avalanche’s NFT market.
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According to Santiment’s data, the number of NFT trades being made on the Avalanche network decreased considerably over the last few days.
The number of buyers and sellers of NFTs on the Avalanche network also went down, as per AVAXNFTSTATS.