Data Scan Avalanche: Active addresses exceed 100,000, DeFi locked value increases by 354.64% over 3 months

Author: Carol

Ethereum has been elevated to the status of a "noble chain" due to transaction fees often exceeding dozens of dollars, which not only restricts the development of its own upper-level ecosystem but also leaves ample development space for other emerging public chains. Since the beginning of this year, Cardano has seen a 631.73% increase in daily active addresses compared to last year, followed by Solana's DeFi total locked value surging 1738% in two months. Now, Avalanche is in the spotlight.

According to CoinGecko data, as of November 25, Avalanche's native token AVAX has risen over 12% in a week, currently around $122, with a market capitalization of approximately $27.4 billion, ranking 11th. What factors have contributed to Avalanche's rapid development? What changes have occurred in its on-chain fundamentals? PANews' data column PAData analyzed the recent on-chain transaction data of Avalanche C-Chain (hereinafter referred to as Avalanche) [1] and found:

1) In the past three months, AVAX has increased by 228.55%, and the daily on-chain transaction count for Avalanche has risen by 414.12%. Overall, the increase in token price is based on demand-side development.

2) Since September, the total transaction fees for Avalanche in the last three months have been approximately $15.44 million, with an average daily transaction fee of about $0.66. In November, the transaction fee per transaction has reversed to an upward trend, with a monthly increase of 757%. The changes in transaction fees and user trading demand are often interrelated, essentially reflecting the blockchain's "impossible triangle."

3) In the last three months, the number of daily active addresses on Avalanche has also shown rapid growth, with an overall increase of 520.96%. On November 22, it surpassed 100,000. The rapid growth of daily active addresses is synchronized with transaction volume, indicating that the increase in transactions is likely due to an effective expansion of the user base.

4) From the staking market perspective, the current total staked amount of AVAX has exceeded $32.1 billion, ranking 4th among 259 staking assets; the staking rate is about 61.26%, lower than SOL, XTZ, ADA, etc., but higher than DOT, FLOW, NEAR, etc.; the expected annualized yield in terms of tokens is about 9.38%, which is not particularly high.

5) In the last three months, the number of staking addresses for AVAX has only increased by 15.54%, far below the growth rate of active addresses during the same period. This may indicate that the current staking market for AVAX is still underdeveloped, or at least that the development of the staking market is lagging behind the development of on-chain trading fundamentals.

6) In the last three months, the net locked value of DeFi on Avalanche has grown to the current $10.034 billion, expanding by 354.64%. During the same period, the locking repetition rate has shifted from a surge to moderate growth. This showcases a potential route for Avalanche to develop its DeFi ecosystem, initially attracting traffic through cross-chain protocols and protocol combinations, and then driving the "local" ecosystem.

7) The win-win situation between Avalanche's native DeFi protocols and the underlying chain is clearer. The average (median) locked value of 13 native protocols has increased by 14.98% in the past week, while the average (median) locked value of 7 multi-chain protocols has increased by only 1.52% in the same period.

8) Several high locked-value Avalanche native DeFi protocols have a market cap to locked value ratio of less than 1, and even below 0.1. The market may be underestimating these protocols.

01

Token price and transaction count rise in sync,

Average transaction fee of $0.7

In the past three months, AVAX has risen from $39.62 at the beginning of September to the current $130.17, an increase of 228.55%. During the same period, the daily on-chain transaction count for Avalanche has expanded from 120,400 to 619,000, an increase of 414.12%. Currently, both AVAX and the daily on-chain transaction count for Avalanche are at historically high levels.

Overall, the increase in user trading demand has been greater than the increase in the native token's price, indicating that the rise in token price is based on demand-side development. Moreover, late October can be seen as a dividing line. Before this, user demand was rising moderately, but the token price fluctuated, meaning its utility value was not fully reflected in the price trend. After this point, the synchronization between user demand and token price has been higher, both showing a rapid upward trend, indicating that the utility value has been fully reflected in the token price. It can be considered that Avalanche's "rise" has accelerated in the past month.

Emerging public chains often highlight advantages such as low transaction fees, and Avalanche is no exception. According to statistics from its official browser, the total transaction fees for Avalanche in the last three months have been approximately $15.44 million, equivalent to the cumulative destruction of AVAX worth about $15.44 million. Notably, November 22 set a recent high for daily total fees at approximately $1.858 million, about ten times the recent average of $186,000. Overall, in the last three months, the daily transaction fees for Avalanche have shown an upward trend, with a more significant increase in November.

In terms of average transaction fees per transaction, the overall average for Avalanche in the last three months is about $0.66. In September, the average daily transaction fee was about $0.91, in October it was about $0.40, and in November to date, it is about $0.69. It is worth noting that the average daily transaction fee showed a declining trend in the first two months, but in November, this trend has reversed to an upward trend, with the average transaction fee per transaction increasing by 757% within the month. As of the statistical date, Avalanche's transaction fee reached a recent peak of $3.0.

In fact, the increase in transaction fees and the growth in user trading demand are often interrelated; when transaction demand rises, fees typically increase as well, which relates to the blockchain's capacity design and consensus mechanism. Essentially, this still reflects the blockchain's "impossible triangle," where distribution, speed, and security are difficult to achieve simultaneously, especially in blockchains with a certain scale of applications.

From the perspective of user scale, in the last three months, the number of daily active addresses on Avalanche has also shown rapid growth. On September 1, the number of active addresses was about 16,700, and by November 22, this figure had surpassed 100,000, with an overall increase of 520.96%. Notably, the increase in November alone reached 154.88%.

The rapid growth of daily active addresses is synchronized with the increase in transaction volume, which also began to grow rapidly from the end of October, indicating that the growth in transactions is likely due to an effective expansion of the user base rather than repeated transactions from single addresses. The on-chain fundamentals of Avalanche have seen significant improvement in the past month.

02

AVAX staking total ranks fourth,

Number of staking addresses exceeds 100,000

From the perspective of the staking market, according to statistics, as of November 23, the total staked amount of AVAX has exceeded $32.1 billion, ranking 4th among 259 staking assets. Most of the top 20 assets by total staked amount are emerging public chains, such as SOL and ADA, which have developed rapidly this year, currently ranking first and second in total staked amount, along with DOT, ATOM, NEAR, MATIC, and other public chains with high staking totals.

The average staking rate of the top 20 assets by total staked amount is about 49.28%, with the exception of ETH, which is below 10%, while others are above 25%. Currently, AVAX's staking rate is about 61.26%, lower than BNB, SOL, XTZ, ADA, FTM, and ATOM, but higher than DOT, FLOW, NEAR, etc.

The average expected annualized yield in terms of tokens for the top 20 assets by total staked amount is about 17.26%, influenced by the extreme values of AXS and CAKE, especially AXS, which currently has an expected annualized yield of 114.59%. Excluding the influence of extreme values, the average expected annualized yield for 18 high-staked assets is about 9.58%. AVAX's yield is about 9.38%, which is not particularly high. However, considering the recent increase in AVAX, its expected annualized yield in fiat currency should still be considerable.

In the last three months, compared to the leap in active addresses on-chain, the number of AVAX staking addresses has not shown the same growth trend. Since September, the number of staking addresses has increased from 15,200 to 17,600, an increase of about 15.54%.

If we roughly estimate the trend of staking activity by the ratio of daily staking addresses to active addresses, we can see that this ratio (which may exceed 100%, meaning that there were no interactions with the blockchain on that day, but they are staking addresses. This situation has only occurred 4 days in the last three months, which does not affect the trend judgment.) has dropped from 91.20% at the beginning of September to the current 16.97%, indicating that a smaller proportion of active addresses are participating in staking. This may suggest that the current AVAX staking market is still underdeveloped, or at least that the development of the staking market is lagging behind the development of on-chain trading fundamentals.

03

DeFi net locked value exceeds $10 billion,

Multiple projects have a market cap to locked value ratio below 1

The improvement in on-chain trading fundamentals is closely related to the construction of the upper-level ecosystem. According to statistics, in the last three months, the net locked value of DeFi on Avalanche has grown from $2.207 billion at the beginning of September to the current $10.034 billion, expanding by 354.64%, with significant growth.

During the same period, the locking repetition rate has risen from 5.62% at the beginning of September to the current 29.84%, an overall increase of about 24 percentage points. Notably, in early October, the repetition rate rose rapidly from below 10% to over 25%, but subsequently tended towards moderate growth. This showcases a potential route for Avalanche to develop its DeFi ecosystem, initially attracting traffic through cross-chain protocols and protocol combinations, and then driving the "local" ecosystem. This is also a common development path adopted by current emerging public chains.

Currently, there are four protocols on Avalanche with locked values exceeding $1 billion: AAVA, Trader Joe, Benqi, and Curve, two of which are leading multi-chain DeFi protocols, while the other two are native protocols. Additionally, there are seven other protocols with locked values exceeding $100 million.

Among the 20 protocols with the highest locked values, there have been both increases and decreases in locked amounts in the past week, with a clearer win-win situation between Avalanche's native DeFi protocols and the underlying chain. The average (median) locked value of 13 native protocols has increased by 14.98% in the past week. Among them, Wonderland, Blizz Finance, and Snowball have all seen weekly increases exceeding 30%. In contrast, the multi-chain DeFi protocols have not benefited significantly from Avalanche, with the average (median) locked value of seven multi-chain protocols increasing by only 1.52% in the past week, with only Alpha Finance achieving over 100% growth, while other protocols saw lower increases or even negative growth.

If we use the ratio of the market cap of governance tokens to the locked value of the protocols as a measure of market expectations for the protocols, we can see that only Snowbank and Wonderland on Avalanche have a market cap to locked value ratio greater than 1, reaching 4.3 and 3.4, respectively. The other seven native DeFi protocols with locked values in the top 20 all have a market cap to locked value ratio below 1, and even below 0.1, such as Trader Joe, Benqi, and Blizz Finance, indicating that the market cap of these protocols' tokens is far less than their locked values. This may relate to the economic models of the governance tokens themselves, but it may also indicate that the market is underestimating these protocols.

Data Notes:

[1] Avalanche currently includes three chains: P-Chain (platformmvm), C-Chain (Ethereum evm), and X-Chain (Ava avm), of which only C-Chain has historical data available and has a higher transaction volume, thus this article only counts C-Chain.