Footprint: Dismantling the mystery of the Avalanche chain climb

Written by Footprint Analyst Simon (simon@footprint.network)

Date: December 2021

Data Sources:Footprint Avalanche Dashboard （https://footprint.cool/NrC9）

Written by Footprint Analyst Simon (simon@footprint.network)

Footprint Analytics ：Avalanche TVL

Footprint: Footprint: The public chain battle broke out, Avalanche is ready to go

》, two months later, looking back at the development of Avalanche, the TVL has risen from US$2.3 billion at the beginning of September to US$13.9 billion. This article will review the upward trend of Avalanche in the past two months, and analyze the reasons for its rise. What makes Avalanche's growth unstoppable?

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Ecosystem support that spares no effort

The Avalanche Foundation announced the $180 million liquidity mining reward program Avalanche Rush on August 18, which promoted Avalanche's first surge. Afterwards, the incentive mechanism of the platform continued to increase. After the launch of Benqi, the Avalanche Foundation jointly launched a $3 million liquidity mining incentive plan, and at the same time rewarded users who borrowed on Benqi with AAVAV and the platform token Qi. It took less than a week Become the highest TVL agreement on the chain.

More than two months later, on November 1st, the Avalanche Foundation once again launched a fund (Blizzard) of over US$200 million, which will be used to stimulate the four fields of DeFi, enterprise applications, NFT and cultural applications in the Avalanche ecosystem, while seeking other Emerging applications. Avalanche's support for the project will include equity investment, token purchases, and various forms of technical, business development, and ecosystem integration support.

The external ecological Avalanche is also constantly expanding. Shopping.io, a well-known encrypted e-commerce platform, announced that it supports users to use Avalanche's token AVAX to shop on Amazon, Walmart, eBay and other platforms, and some areas can also enjoy a 2% discount.

• As a U.S. cryptocurrency payment infrastructure provider, Wyre has also integrated the payment network into the Avalanche ecosystem, supporting users in more than 50 countries/regions to convert 9 currencies including US dollars to AVAX.

Multi-chain framework to strengthen infrastructure

• Avalanche is a POS chain, and the outstanding difference from other public chains is that it adopts three core chains. The three chains take on different roles by using different data structures.

X-Chain (transaction chain)

• It is used for trading and creating assets, and has the characteristics of fast transaction speed. Typically users use X-Chain when depositing or withdrawing from an exchange, and X-Chain also allows users to create and mint tokens.

C-Chain (contract chain)

Smart contracts for deployment, issuance and interaction. Since the chain supports the Ethereum Virtual Machine (EVM), it is fully compatible with smart contracts on Ethereum. Usually users will use the C-chain for mining, lending and other activities.

Used to manage staking and network validation, and create subnets. Usually validators participate by pledging tokens in the P chain, thus helping to ensure the security of the core network.

Compatibility with EVM makes it easy for Ethereum developers to port various DApps to Avalanche. Unlike other public chains that focus more on their own DApps, Avalanche has deployed and introduced the top protocol on Ethereum early, and this form can gain more growth and more attention.

At present, Aave and Curve, the top applications on Ethereum, have been deployed on Avalanche and contributed about 33% of TVL. Among them, Aave quickly surpassed the top-ranking Trader Joe and Benqi after its launch in October.

Footprint Analytics: TVL of each protocol on Avalanche



The number of agreements exceeding 100 million on Avalanche has rapidly increased from only 4 in August to 12, of which 5 exceeded 1 billion. Aave quickly jumped to the first place after it went online. The Avalanche Fund also announced in November that it will start a three-month liquidity mining reward plan with SushiSwap in the near future, and will each issue a reward of US$7.5 million with SushiSwap. When SushiSwap is introduced, it is believed that it will cause a new round of growth again.

In addition to protocols from Ethereum, Avalanche's own protocols have also developed rapidly under various incentive policies.

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In the DEX class, although Pangolin is the veteran on Avalanche, its TVL has been rising slowly. In contrast, Trader Joe, which started to take off in August, has risen rapidly and currently ranks first among DEXs with $2.3 billion. In addition to trading, Trader Joe also offers lending and liquid asset management. Users can directly convert a single asset with liquidity-providing LP funds through simplified operations, and can have a one-stop experience here.

epilogue

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China TVL ranks fourth, with

Footprint Analytics is a one-stop visual blockchain data analysis platform. Footprint assisted in solving the problem of data cleaning and integration on the chain, allowing users to enjoy a zero-threshold blockchain data analysis experience for free. Provide more than a thousand tabulation templates and a drag-and-drop drawing experience, anyone can create their own personalized data chart within 10 seconds, easily gain insight into the data on the chain, and understand the story behind the data.

The above content is only a personal opinion, for reference and communication only, and does not constitute investment advice. If there are obvious understanding or data errors, feedback is welcome.

About Footprint Analytics:

Footprint Analytics is a one-stop visual blockchain data analysis platform. Footprint assisted in solving the problem of data cleaning and integration on the chain, allowing users to enjoy a zero-threshold blockchain data analysis experience for free. Provide more than a thousand tabulation templates and a drag-and-drop drawing experience, anyone can create their own personalized data chart within 10 seconds, easily gain insight into the data on the chain, and understand the story behind the data.

Footprint Analytics official website: https://www.footprint.network/

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