The Avalanche (AVAX) ecosystem is gaining more and more attention in the world of blockchain and decentralized finance (DeFi). Despite not being as well known as other chains such as Ethereum or Binance Smart Chain, Avalanche’s unique consensus mechanism and interoperability with other chains make it an attractive option for developers and users alike.
With a promising Total Value Locked (TVL) and strong user and developer involvement, the Avalanche ecosystem is on the cusp of significant growth and innovation.
Is AVAX the next big thing?
According to according to DeFi researcher Wacy, the Avalanche ecosystem is on the verge of booming, and there are several reasons for its recent surge in popularity. While many are focused on the new Layer 2 solutions, Wacy suggests that Avalanche’s potential should not be overlooked.
A key measure of a chain’s success is Total Value Locked, and despite the token price dropping more than 80%, the TVL for $AVAX is only down 50%. This indicates 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 user engagement. The number of contracts and operators is also a powerful indicator of interest in a project, and this metric shows strong developer involvement as well.
Furthermore, Wacy notes that the Avalanche community is also growing, with increasing followers on Twitter and a high level of Twitter mentions over the past 7 days. These basic stats may be overlooked by some, but they provide valuable insights into the potential of the avalanche ecosystem.
Avalanche emerges as a hidden gem for developers and users
According to Wacy, as the Avalanche ecosystem continues to gain attention in the world of blockchain and decentralized finance, several projects are emerging as potential headline stories that could see a significant surge during this heyday.
One such project is Trader Joe, currently the number one decentralized exchange (DEX) on Avalanche. By creating the most capital efficient DEX in DeFi, Trader Joe is shaping the future of decentralized finance. The JOE Token allows users to earn a share of the platform’s revenue and access exclusive rewards and features.
With a current price of $0.35 and a market cap of $120 million, Trader Joe is listed on Binance, OKX, and Huobi and is poised for significant growth in the coming months.
Another project that could see significant growth during the heyday of the avalanche ecosystem is GMX. GMX is a decentralized exchange with low swap costs and transactions with no price impact. While it is known for supporting 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 wagering on GMX brings rewards, converting 30% of swap and leverage trading fees into ETH/ AVAX and are distributed to GMX tokens. Staking on Arbitrum will yield ETH, while Staking on Avalanche will yield AVAX.
Overall, these projects represent the unique potential of the avalanche ecosystem. With its unique consensus mechanism, interoperability with other chains and promising statistics, Avalanche is attracting a lot of interest from both developers and users. As more projects like Trader Joe and GMX emerge, we can expect continued growth and innovation in the ecosystem, with new use cases and applications for blockchain technology.
AVAX is currently experiencing a significant decline in value across all time frames. The current trading price is $14.09, with a slight increase of 0.1% in the last 24 hours. However, over the seven, fourteen and thirty day periods, AVAX experienced a decline of 5%, 6% and 16% respectively.
Featured image of Unsplash, chart from TradingView.com
