The Avalanche blockchain is attracting a surge of new deposits into its DeFi protocol. Meanwhile, avalanche offers developers features that only a few others can boast of. As a result, the platform is attracting new users, which incentivizes them to make their communities bigger.
On the other hand, the network was amongst the winners of the 2021 crypto boom as $AVAX increased its value by 500% in the last 6 months. In this article, you will discover why this trend has happened.
Avalanche Blistering Growth
Avalanche launched its platform in September 2020, and a year later, it has become amongst the titan in the blockchain space. Nowadays, Avalanche has over 320 projects built on its ecosystem, including top DeFi projects such as Chainlink, SushiSwap, Tether, Circle, and The Graph.
Furthermore, the layer-one network has more than 1,000 validator nodes staking tokens. Also, Avalanche serves as a hub for decentralized apps and custom blockchain networks. The platform’s developers explained that Avalanche’s goal is to dethrone Ethereum as the new hub for smart contracts.
The Growth Continues
A tweet shared by Ava Labs Director of DeFi Luigi Demeo showed that Avalanche has grown. The platform has more monthly active addresses in the first week of January than it did in the full month of October 2021. Considering that October, according to Demeo, was a good month. Moreover, the blockchain surpassed 3000,000 monthly active users in October.
That was a breakthrough achievement, but those figures have now skyrocketed in the first few days of the new year. In the first few days of January, there have been 461.147 active addresses as against the 352.273 addresses in October.
So. #Avalanche has more Monthly Active Addresses in the first week of January than it did in the full month of October. Fwiw, October was a good month.
Follow the growth. pic.twitter.com/m0BQgBTMiE
— Luigi D'Onorio DeMeo🔺 (@luigidemeo) January 8, 2022
Increase in Active Addresses
The number of active addresses on a DeFi platform can indicate how well that platform performs. If the active addresses increase, it hints that more users are utilizing the DApps built on it for their financial needs. As a result, Avalanche gets more value.
Avalanche’s growth in terms of active addresses since last year has been alarming. As of early 2021, the figures were a far cry from what it now is. Until April 2021, the Avalanche platform had less than 50,000 active addresses.
But, What Has Caused This Increase?
Several factors are responsible for the growth seen on the Avalanche blockchain. A careful study of the Avalanche network since its surge in July 2021 shows that more users are rushing to it. This growth is due to the features Avalanche provides that others such as Ethereum and Bitcoin cannot.
Bitcoin and Ethereum, for example, have transactional throughput rates of 7 and 14 transactions per second. Avalanche, on the other hand, has a tps of nearly 4,500. Furthermore, the transactional finality times for Bitcoin and Ethereum are 60 minutes and six minutes, respectively. Therefore, with a transactional finality time of under two seconds, Avalanche is the clear winner of the contest.
Also, Avalanche is widely seen as a serious Ethereum alternative. Investors and developers began to troop to the platform after it received a positive review from the Bank of America last year. Avalanche’s low cost and speed is key reason why it keeps baiting more users.
According to Bank of America:
"#Avalanche’s Scaling Capability Offers Viable Alternative to Ethereum"
— Avalanche News (@news_avax) December 17, 2021
More About Avalanche’s Growth.
The rise of Defi is another reason Avalanche’s platform has continued to be a destination for investors and developers looking to capitalize on the space. In addition, some of the top DeFi projects run on Avalanche.
Also, Avalanche Rush in 2021 was a turning point for the blockchain. The initiative was a $180 million liquidity mining incentive program launched in collaboration with Aave and Curve. The goal was to introduce more applications and assets to its growing DeFi ecosystem. This put Avalanche on a good pedestal.
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