Avalanche wins big in late 2021, but…

There is detailed information and statistics on avalanche status (AVAX) in 2021, as reported by Messari Research.

Snowball effect

According to the report, Avalanche recorded not just one, but multiple levels of record of active addresses, transactions, market capitalization, and Total Value Locked (TVL).

“Overall, AVAX completed Q4 averaging about 475,000 transactions per day, which is nearly 40% of Ethereum’s approximately 1.25 million average transactions per day.”

Messari went on to say that Avalanche appears to be attracting users who want to try Ethereum Virtual Machine (EVM) compatibility without losing money due to Ethereum’s high gas fees.

For a second opinion, investment analyst and professor Adam Cochran also acknowledges AVAX’s growth. Cochran believes AVAX can outperform other L1 coins and expressed confidence in Avalanche’s scalability.

There’s a lot to talk about on Avalanche’s DeFi marketplace.

Messari reports that AVAX’s TVL is growing faster than most of its L1 and L2 competitors. Furthermore, a large part of its DeFi milestones are due to Aave and Curve. However, Avalanche still has a long way to go before TVL can threaten more than 50% of TVL Ethereum dominance.

Another area of interest is Avalanche developer activity. The number of individual contracts provided rose to over 20,000 between November and December 2021.

Source: Messari.io

A key reason could lie in the launch of the Avalanche subnet in December 2021, which will allow users to create their own EVM-compatible blockchains. That also brings challenges. The strong growth in the number of users and transactions has led to a sudden increase in fees, which average up to $3 per request.

Nevertheless, Messari comes to the following conclusion:

“Higher fees could be a signal that the network isn’t ready for the growth it experienced in the fourth quarter…”

AVAX/USD 4H | Source: TradingView

At press time, AVAX is trading around $70.6. With a market cap of 12, the coin is up 9.93% in the last 24 hours and 15.8% in the last seven days. Meanwhile, the all-time high is $146.22.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.