The Avalanche (AVAX) ecosystem is gaining more attention in the world of blockchain and decentralized finance (DeFi). Although less well known than other chains, such as Ethereum or Binance Smart Chain, Avalanche’s unique consensus mechanism and interoperability with other chains make it a compelling choice for developers and users.
With a promised Total Value Locked (TVL) and strong engagement from users and developers, the Avalanche ecosystem is on the cusp of significant growth and innovation.
Is AVAX the Next Big Thing?
ACCORDING by DeFi researcher Wacy, the Avalanche ecosystem is about to blossom, and there are many reasons behind its recent rise in popularity. While many are focused on new Layer 2 solutions, Wacy suggests that Avalanche’s potential should not be overlooked.
An important measure of the success of a chain is the Total Value Locked, and despite the decrease in the price of the token by 80%, the TVL for $AVAX only decreased by 50%. This shows continued interest in the chain and serves as a positive indicator of its future potential.
In addition to TVL, other metrics such as daily active addresses and daily transactions show good growth, indicating strong engagement from users. The number of contracts and deployers is also a powerful indicator of interest in a project, and this metric also shows strong engagement from developers.
Additionally, Wacy noted that the Avalanche community is also growing, with an increasing number of Twitter followers and a high level of Twitter mentions over the past 7 days. These basic metrics may be overlooked by some, but they provide valuable insights into the potential of the Avalanche ecosystem.
Avalanche Is Emerging As A Hidden Gem For Developers And Users
According to Wacy, while the Avalanche ecosystem continues to get the attention of the world of blockchain and decentralized finance, several projects have emerged as potential main accounts that will see a significant increase during this period.
One such project is Trader Joe’s, which is currently Avalanche’s number one decentralized exchange (DEX). By creating the most capital efficient DEX in DeFi, Trader Joe’s is shaping the future of decentralized finance. The JOE token allows users to earn a share of the platform’s revenue and unlocks access to exclusive rewards and features.
With a current price of $0.35 and a market cap of $120M, Trader Joe’s is listed on Binance, OKX, and Huobi, and is poised for significant growth in the coming months.
Another project that will see significant growth during the Avalanche ecosystem is GMX. GMX is a decentralized exchange with low swap fees and zero impact on price trades. While it is best known for its support of Arbitrum, GMX also supports AVAX.
With a current price of $54 and a market cap of $475 million, GMX is listed on Binance, OKX, Huobi, and KuCoin, and staking GMX will receive rewards, with 30% of swap and leveraged trading fees which is converted to ETH/AVAX and distributed to GMX tokens. Arbitrum staking earns ETH while Avalanche staking earns AVAX.
Collectively, these projects represent the unique potential of the Avalanche ecosystem. With its unique consensus mechanism, interoperability with other chains, and promising metrics, Avalanche has attracted significant interest from developers and users. As more projects like Trader Joe’s and GMX emerge, we can expect to see continued growth and innovation in the ecosystem, with new use cases and applications for blockchain technology.
Currently, AVAX is experiencing a significant decline in value across all time frames. Its current trading price is $14.09, with a slight increase of 0.1% in the last 24 hours. However, in the seven, fourteen, and thirty day periods, AVAX experienced declines of 5%, 6%, and 16% respectively.
Featured image from Unsplash, chart from TradingView.com
