Even though the total value of tokens locked on Avalanche-based decentralized finance applications dropped from $15 billion in 2021 to just over $900 million in November 2022, such transactional activity continued.
Nansen, a data and analytics company, stated in the Avalanche’s report for the fourth quarter that it shared that the network demonstrated strength with notable increases in both the volume of non-fungible trading (NFT) trading and the total number of transactions.
Nansen stated, “While the network ended November 21, 2021, with nearly 27 million transactions, Avalanche’s cumulative total surpassed 450 million transactions on November 21, 2022, marking an astonishing 1,507 percent increase in a single year.”
According to DeFiLlama data, such transactional activity occurred even as the total value of tokens locked on Avalanche-based decentralized finance applications decreased from its peak of $15 billion in 2021 to just over $900 million in November 2022.
“Users of Avalanche may wonder, ‘What crypto winter?’ Mega Septiandara, a research analyst at Nansen, stated, “the network made impressive gains in Q4 2022.”
Septiandara continued, “Avalanche is poised for continued growth in 2023 as the entire Web3 space works to rebound from the havoc caused by the FTX collapse with strong transaction totals and NFT trading volumes pairing well with new features and products set to improve user experience.”
The report found that the Q4 daily transactions were mostly volatile, ranging from approximately 100,000 to 230,000 transactions per day when specifically looking at Avalanche’s C-Chain.
Avalanche subnets, a custom blockchain built on Avalanche, may have contributed to some of that expansion. On November 13, 2022, products like DeFi Kingdom’s DFK Subnet had a total of 200 million transactions.
However, the report noted that Avalanche C-Chain’s transactions were relatively stable in comparison to Ethereum.
The default smart contract blockchain on Avalanche is the Avalanche C-Chain, which stands for “contract chain.” It makes it possible to create smart contracts that are compatible with Ethereum. This works in conjunction with the X-Chain, which sends and receives AVAX token-based funds.
Throughout the fourth quarter, Avalanche saw the expansion of a thriving non-fungible token marketplace, including OpenSea, a market leader in the industry.
A number of new projects, protocols, and features joined Avalanche’s ecosystem in Q4 in addition to significant growth in overall transactions and NFT trading volumes.
Core Web, a free, all-in-one command center that gives users a more intuitive and comprehensive way to view and use Web3 across Avalanche and Ethereum, and JoePegs, an NFT marketplace that Nansen noted have grown to be the largest on Avalanche with more than 12,000 users, over $3.4 million in secondary NFT sales.
