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Avalanche makes silent moves in Q3 amidst ETF clamor

Avalanche made headlines for the key partnerships forged and improvements in on-chain activity throughout Q3.

Published

1 year ago

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  • Avalanche’s monthly transaction figures bounced back considerably from 2022.
  • The total value locked dropped more than 15% in the last quarter.

Over the last quarter, much of the focus of the crypto market was centered around exchange-traded fund (ETF) applications for two of the biggest assets in the sphere, Bitcoin [BTC] and Ethereum [ETH]. Rightly so, because developments around these were moving the market.

Read AVAX’s Price Prediction 2023-24

It was crucial, however, not to lose sight of other cryptocurrencies that withstood the bearish market conditions of Q3 in order to carve out a position for themselves.

Notably, Proof-of-stake (PoS) network Avalanche [AVAX] deserved a special mention for the key partnerships forged and improvements in on-chain activity throughout Q3.

Marked recovery in network parameters

Undeniably, like other cryptos, Avalanche’s key performance indicators haven’t been the same as they were during the peak of the bull market. Having said that, a significant recovery was observed, according to a report by digital asset research company Galaxy Research.

Indeed, in the last quarter, Avalanche’s monthly transaction figures bounced back considerably from the downfall induced by the market implosions of May 2022. Notably, the transaction count didn’t plunge after the levels spiked, rather stabilized at those levels.

Source: Reflexivity Research/ Dune

Furthermore, the number of people interacting with the blockchain soared. The monthly active user count peaked at around 1 million in the last few months.

Source: Reflexivity Research/ Dune

The report attributed the turnaround in network utilization to a slew of high-profile partnerships that Avalanche established in recent memory. Subnets, or application-specific blockchains, attracted players across decentralized finance (DeFi), gaming, and non-fungible token (NFTs).

However, the success in network activity didn’t lead to proportional capital inflows in the Avalanche ecosystem. The total value locked (TVL) dropped more than 15% in the last quarter.

The Curve Finance [CRV] hack and the ensuing FUD

were blamed as one of the primary drivers of the decline, per Galaxy Research.

However, over the last month, the TVL remained fairly stable and hovered around the $1.25 billion mark.

Source: DeFiLlama

Avalanche’s key partnerships

The report noted that Avalanche collaborated with players from “both the crypto and traditional financial sectors” to expand its footprints.

One of the most talked-about partnerships of Q3 was decentralized exchange (DEX) Balancer [BAL] expanding to the Avalanche chain.

The protocol with a TVL of $694 million as of this writing, aimed at tapping into Avalanche’s increased throughput and scalability advantages to introduce new DeFi opportunities.

Notably, Balancer’s focus was on the liquid staking market. It joined hands with liquid staking token (LST) protocols on Avalanche to make yield-bearing assets available to liquidity providers.

Apart from Balancer, other DEXs like Multiswap also logged into Avalanche, allowing users the right to swap hundreds of tokens in a single transaction.

While partnerships with Web3 entities were praiseworthy, Avalanche attracted big entities from the Web2 world as well.

Japan’s data marketing company Loyalty Marketing, in collaboration with blockchain service provider PlayThink, turned to Avalanche subnets to launch its popular loyalty rewards program.

The transition, stated to happen by year-end, would involve distribution of NFTs to its million-strong existing user base.

A bit earlier in July, Solert Games, a pioneer in online gaming, announced the launch of a subnet to capitalize on the growing possibilities for growth in blockchain gaming.

Notably, Co-Founder and CEO of Solert Games, said that the move would blend the social dynamics of Web2 with the user-centric decentralization of Web3.

The international gaming studio was home to more than 160 games, with cumulative downloads exceeding 20 million.

AVAX gets resistance at these levels

High-profile partnerships like these and many more gave the AVAX fanbase hope for the long term.

Interestingly, AVAX climbed all the way up to $11 this past weekend, the first time in more than a month. However, it met a barrier at $11.5 and the value has since retreated to $9.72 as of press time, data from CoinMarketCap

showed.

Realistic or not, here’s AVAX’s market cap in BTC’s terms

A recent X (formerly Twitter) post by on-chain analytics firm IntoTheBlock revealed that during a bear market, these regions have historically acted as resistance points. Holders dump their AVAX tokens to make up for the losses incurred.

Therefore, it would be interesting to observe AVAX’s trajectory once it breaches this barrier.

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