Avalanche on the heels of Binance and Ethereum (ETH) »Crypto Insiders

In our Premium Membership environment, this week we received several requests for a basic analysis for this project. For this reason, today we analyze the latest developments around this project, on-chain data and more. Would you like to participate in the discussion about this project or are you considering joining a position? In our Discord community for members, various technical analyzes are shared daily by experienced analysts and traders. AVAX is also regularly discussed here. In this way, together with other members, we try to be at the forefront of the market and find the right entry and exit moments.

Just to update, what is Avalanche (AVAX)?

Avalanche offers developers a platform where they get the opportunity to design and develop their own blockchain, but also a platform on which they can build their own decentralized applications (dApps) through smart contracts. In addition, Avalanche’s project aims to improve transaction speed, scalability and decentralization. They indicate that this is a shortcoming of the (old) traditional blockchains.

Latest news / latest developments

An interesting recent development around the Avalanche ecosystem is the news that a possible new investment round for Avalanche may be on the way. Avalanche is reportedly seeking to raise $ 350 million. Should this investment round continue, it would give Avalanche a value of approximately $ 5 billion. It is not yet known when the investment round will take place.

In addition, we see that Avalanche increasingly wants to focus on a number of other popular sectors. Avalanche has made an amount of $ 290 million available for the development of a so-called multiverse. The multiverse consists of several subnets, a way to build secure and reliable networks on a main network, is mainly aimed at the blockchain gaming sector, decentralized economy (DeFi), non-fungible tokens (NFT) and institutional use cases. This money is used to encourage developers to come up with interesting projects.

On-chain and data analysis Avalanche (AVAX)

Total value stored in Avalanche blockchain

Source: DefiLama

Location of Avalanche based on TVL

Source: DefiLama

What do we see on this graph / data?

In the picture above we see total value locked (TVL). TVL shows the total value stored in the projects built on the Avalanche blockchain. The total value of all projects at the time of writing is $ 5.27 billion. When this TVL of Avalanche compares with similar projects, we see that Avalanche is currently in position # 3 under Binance Chain and Ethereum (ETH).

The second image shows that this value consists of 207 different projects built on Avalanche. Based on this information, it can also be concluded that Avalanche blockchain is very popular for DeFi projects and developers. We can see that Avalanche is in third place based on TVL. A total of 207 DeFi projects have been built on Avalanche worth a total of $ 5.27 billion. TVL is quite equal to the total market value of AVAX. AVAX has a total market value of $ 8.6 billion.

What can we conclude from this?

From this we can conclude that Avalanche is very popular among developers. This is of course because Avalanche also focuses on this. The platform is set up so that developers can build different applications using smart contracts. Avalanche is therefore really good for what it is intended for, which is always a nice feature for a project.

In addition, it is clear that Avalanche is a very big player in DeFi. The applications built on Avalanche are actually very used. However, Avalanche will not be able to match the platforms that are above it so far, namely Binance Smart Chain (BNB) with a value of $ 8.51 billion and Ethereum (ETH) with a value of $ 70.32 billion.

Top ten projects built on Avalanche (AVAX)

Source: DefiLama

What do we see on this graph / data?

The ten largest projects built on Avalanche are clarified in the list above. The largest project is Aave (AAVE). This is twice on the list, as the largest is a new version of the platform than number four. In second place is Trade Joe (JOE), a decentralized exchange (DEX). Another notable project that is in the top ten is Curve (CRV). Together with AAVE, this is in the top 100 based on market value.

What can we conclude from this?

The conclusion we can draw from this information is that Avalanche is a serious project where serious projects are actually being made with good developers. For example, two projects from the top ten are already in the top 100 largest cryptocurrency projects in the world. A very positive sign!

The number of transactions is also increasing on the Avalanche network (AVAX).

Source: Messari

What do we see on this graph / data?

Above, we take a look at the financial side of Avalanche through the quarterly results for both 2021 and the first quarter of 2022. Based on these data, we can understand the growth of the Avalanche Network. We can see this by looking at the number of active wallet addresses. In the 2nd quarter of 2021, there were only 3,588. In the 1st quarter of 2022, there are already 91,081. The number of daily transactions also increased from 25,321 to 865,489 in one year. Also important is the fact that the average transaction cost has dropped from $ 0.87 per share. transaction for $ 0.67.

What can we conclude from this?

It is clear from these figures how fast Avalanche is growing. There are many more active wallet addresses, which means that the network is being used more and more, more transactions are carried out in less time and the network is getting cheaper from quarter to year. These are all signs that the network is doing well.

Social numbers are declining

Source: Santiment

What do we see on this graph / data?

From the graph above, we can see that the number of Twitter followers (blue line) of Avalanche is declining. In addition, we see the number of active users on Telegram (red line) also stagnate.

What can we conclude from this?

From this we can conclude that despite the fact that the project is doing well numerically, the interest in the platform’s social media is still declining. However, it is unclear exactly what is causing this. It can be for a number of different reasons. It is possible that people have lost interest in the postings Avalanche places on their Twitter, or for example because the market is not doing well with all cryptocurrencies and people are less involved in the market. In addition, of course, it may also have to do with the mood of the market. The mood is very negative at the moment due to the hardships of recent weeks. However, this does not have to mean that the social in a project can not grow. Elrond is a good example of this. All in all, it’s an interesting fact to keep an eye on.

Buy or sell Avalanche (AVAX)?

The crypto market is volatile and the market sentiment is constantly fluctuating and strongly influenced by economic events and traditional stock markets. This sometimes makes it difficult to determine the right time to invest in a particular project.

For answers to the question of buying or selling, we would like to refer you to our Discord group for members. Our analysts and experienced traders discuss their own entry and exit points on a daily basis. We also regularly share additional price analyzes and updates of projects that we have discussed earlier in this section. Through Discord, we can share knowledge with each other 24/7, and we try to be at the forefront of the market with our members.

Disclaimer: Investment involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips on this website are based on our analysts’ own insights and experiences and are for educational purposes only.

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