Deconstructing the mystery of the avalanche chain rise

Footprint Analytics published an article on Avalanche in September. "Change: Civil war has broken out. The Avalanche is ready." We will be back in two months to see the success of the Avalanche. It rose to $ 13.9 billion in September.

This article examines the two-month uptrend in avalanches and explores the reasons for the rise. Why could the development of Avalanche stop?

Footprint analysis: Avalanche TVL

01

Effortless ecosystem support

The Avalanche Foundation announces August 18Laboratory $ 180 Liquid Mining Rewards ProgramAvalanche Rush led the first wave of Avalanche.

Since then, the platform's support campaign has continued and, after Benqi went live, he partnered with the Avalanche Foundation to create a $ 3 million mining support fund, while rewarding AVAV users and the Qi Platform Token borrowed from Benqi. In less than a week, it has become TVL's most recognizable channel.

More than two months later, on November 1, the Avalanche Foundation took back $ 200 million (Blizzard) to support four areas of the Avalanche ecosystem: DeFi, Commerce, NFT, and Cultural Use. Yet another new application.

Avalanche's support for the project includes equity investments, sourcing and support for a wide range of technology applications, business development and ecosystem integration.

External ecological avalanches are still developing.

The popular crypto e-commerce platform Shopping.io has announced that it will allow users to use the Avax token from Avalanche to make purchases on Amazon, Wal-Mart, eBay and other platforms, with a discount of 2 % in some places.

U.S. cryptocurrency payment infrastructure provider Wyre is also integrating its payment network into the Avalanche ecosystem, allowing users in over 50 countries / regions to exchange 9 currencies, including the U.S. dollar, for AVAX.

02 ib

Multi-chain framework for strengthening infrastructure

Avalanche is a point-of-sale chain, and the biggest difference to other public channels is that it uses a three-core chain. Our chains use different materials to work differently.

-X-Chain (chain industry)

It is used for commercial and industrial construction and is characterized by rapid exchange. Typically, users use X spin when depositing and withdrawing transactions, and the X string also allows users to create and configure symbols.

-C-Chain (contract chain)

Smart contracts for product distribution, export and integration. Since the chain supports Ethereum Virtual Machine (EVM), it has been successful with Ethereum smart contracts. Typically, users use the C chain for mining, lending, and other activities.

-P-Chain (platform chain)

Used to manage commitments and agreements in a network and to create subnets. Typically, validators join to tokens promised on the P chain to keep the core network secure.

Initially, exchange rates were higher than other public channels due to the multiple connectivity options, but in August, Apricot Phase 3 was upgraded to accommodate API applications, reducing C. 66 exchange costs. % Chains.

Avalanche will use this new mechanism to speed up the overall exchange in the chain, and the TPS will reach over 4,500. At the same time, due to its low cost, Avalanche has a better market share compared to Ethereum. With the blessing of a run across the Avalanche Bridge, users can easily move assets through other public channels.

03

Introduce the header protocol

An integrated EVM allows Ethereum developers to easily port multiple DApps to Avalanche.Unlike other public apps which focus more on their own DApps, Avalanche was used early on to teach advanced Ethereum protocols, and this format could gain more growth and interest. .

Currently, the Ethereum Aave and Curve head application has been shipped to Avalanche, contributing up to 33% to TVL. Among them, Aave quickly overtook traders Joe and Benqi shortly after they went live in October.

Footprint Analytics: TVL status for all Avalanche rights

Avalanche, more than 100 million contracts went from 4 to 12 in August, of which five topped one billion, quickly becoming number one after Aave went live.The Avalanche fund also announced that in the near future in November, it will announce quarterly mining profits with SushiSwap and give a gift of $ 7.5 million each from SushiSwap. We believe that the introduction of SushiSwap will lead to further growth.

In addition to the Ethereum consensus, the Avalanche consensus has also grown rapidly as a result of various initiatives.

Footprint Analytics: TVL status for all Avalanche rights

In the DEX categoryPangolin is an avalanche veteran, but TVL is slowly gaining ground. For example,Trader Joe, which launched in August of last year, is now in DEX for the first time with $ 2.3 billion.In addition to marketing, Trader Joe also manages loans and manages liquid assets. Users can convert assets directly into LP accounts which generate income from a single transaction.

in the lending roomAs a traditional lender, Benqi has a stable TVL.Benqi's TVL was clearly thwarted by the Aave airlift in October and slowly returned to a peak of 1.7 billion, but its share of business was slowly swallowed up by Aave. Benqi's operations include loans and mining investments supporting the deployment of the QI token platform and various securities, WETH, WBTC and other assets from Ethereum to Avalanche.

Yield Yak, Avalanche's first Yield platform in the Yield category, now has 700 million TVL.It strives to be user-friendly during trading hours and now incorporates features like Swap, Farms, and Stake. Yield Yak earns farm income from each contract and blended interest rates. Now it promotes Stable Coins, Single Asset, and LP Tokens.

concludes

Avalanche is currently ranked 4th on TVL on the public keychain and, like Terra, is preparing to play in the financial markets.

The price of AVax, the Avalanche chain's token, also nearly doubled in September. At the end of November, the price was $ 205, the second highest after ETH, BNB and SOL.

Footprint Analytics: the value of each public channel

Multi-race races are no exception, and there are many public channels that suddenly go up and down. Avalanche continues to support and rethink the entire process of Ethereum, at the same time the user-friendliness makes it stand out from the competition in the face of many masses.

Hopefully the Avalanche can stand the test of time for a long-term victory.