Can Avalanche outperform Ethereum? Messari report reveals…
Ava Labs Inc., the lead developer of the Avalanche blockchain, is in the process of raising a new round of funding, according to people familiar with the discussions. This news comes after Avalanche’s strong start to 2022 with promising data reported in the Q1.
Let’s talk numbers!
Messari formulated a report titled “State of Avalanche Q1 2022”. The report stated that the Q1 “consisted of continued growth and the stabilization of network usage, financial performance, and network infrastructure”.
Avalanche experienced modest growth in comparison with the previous quarter. However, there are massive growth opportunities as “average daily transactions nearly doubled over the quarter (+82.8%);” total revenue grew by 72.7%.
There was an upward trend in the network usage as well with Avalanche gradually catching up with the huge market of the Ethereum blockchain.
AVAX picked up from where it left off in the previous quarter. The average daily transactions rose from 473,000 in Q4 2021 to 865,000 in Q1 2022.
It has now reached roughly three-quarters of Ethereum’s 1.17 million transactions. Avalanche also experienced a daily revenue hike. While other EVM chains went through a decline, AVAX was able to close in on the BNB chain and Ethereum as well.
Many major events took place in this quarter that reflected on the market cap of AVAX. Prominently, in January the Subnet- Ethereum Virtual Machine was launched which allows user to rapidly create their own EVM-compatible blockchains.
Another market-cap surge was observed after Anchor Protocol, the largest on Terra proposed a UST borrowing strategy. The idea was to include AVAX as the latest collateral asset creating a new range of options for the Avalanche blockchain.
According to the report, the uptick in March was due to the launch of the “Crabada and DeFi Kingdoms subnets with Crabada running testnet and DeFi Kingdoms live on mainnet.”
The report concluded stating,
“Avalanche has an interesting opportunity to surpass Ethereum over the next quarter.”
But ETH might run away soon
Ethereum is set to launch “The Merge” soon which has already created euphoria across the community. The blockchain is leading the NFT marketplace with soaring traded volumes.
Ethereum now has a stronghold in the world of gaming, NFTs, music, entertainment, and DeFi. Considering all the technical factors, the aspect of Avalanche surpassing Ethereum looks bleak in the current scenario.