The price of Avalanche (AVAX) has dropped by more than 30% in April, but the smart contract platform remains a strong candidate for decentralized applications because to its scalability, low-cost transactions, and huge presence in the decentralized finance (DeFi) environment.
The network is compatible with the Ethereum Virtual Machine (EVM) and is distinct in that it does not encounter the same operational limitations of high transaction fees and network congestion as the EVM.
By providing a proof-of-stake (PoS) layer-1 scaling solution, Avalanche was able to acquire over $9 billion in total value locked (TVL). This metric is particularly important since it monitors the deposits made on the network’s smart contracts. For example, the BNB Chain, which has been in operation since September 2020, has $10.4 billion in TVL.
Despite the fact that the AVAX token price has fallen and the TVL is trailing some of its competitors, investors remain enthusiastic on the basis of fundamentally favorable developments that occurred in April.
Bloomberg reported on April 14 that Ava Labs, the principal creator of the Avalanche blockchain, has raised $350 million from investors. This transaction valued the firm at $5.25 billion, and Avalanche now has roughly 100 active apps ranging from decentralized banking to nonfungible token (NFT) markets and games, according to DappRadar statistics.
Earlier last month, the Terra USD algorithmic stablecoin’s backers acquired a total of $200 million in AVAX for their tactical Terra USD reserves. Do Kwon, Terra’s co-founder, emphasized Avalanche’s strong ecosystem growth and massive user base.
Despite the good news, AVAX’s price is still 53% lower than its all-time high of $147, resulting in a market value of $18.4 billion. Terra (LUNA) has a market cap of $31.0 billion, while Solana (SOL) has a total worth of $33.3 billion. In the previous 30 days, Avalanche’s major DApp measure improved as the network’s TVL recovered to 121 million AVAX.
The graph above depicts how Avalanche’s DApp withdrawals soared at 132.9 million AVAX on March 14, before plummeting to their lowest level since January 3. As a consequence, the present TVL of $8.5 billion is down 10.5 percent in the previous 30 days.
Despite the fact that Avalanche’s TVL has been struck the most when compared to rival smart contract platforms, network adoption in the DeFi category is strong. For example, Trader Joe’s 180,830 active addresses outweigh those of MetaMask Swap, Ethereum’s biggest DeFi service, which has 116,210 active users.
According to the statistics presented above, Avalanche is maintaining its lead over competitor chains. Despite the fact that the AVAX price has dropped 29.5 percent in the last 28 days, investors need not be alarmed because the decentralized application network has reported strong TVL and DApp use figures.
02 Feb 2023
© 2015-2023 Coinposters. All rights reserved!