Transactions on the Avalanche blockchain increased by up to 1,500% last year compared to 2021, despite the fall of major centralized crypto giants and the sector entering a technical bear market. Nansen, a data and analytics firm, stated in Avalanche’s fourth-quarter report shared with CoinDesk that the network displayed strength with significant growth in both non-fungible trading (NFT) trade activity and overall transaction traffic.
“While the network concluded November 21, 2021, with roughly 27 million transactions, Avalanche’s cumulative total topped 450 million transactions on November 21, 2022, representing an incredible 1,507% rise in a single year,” Nansen added. Such transactional activity occurred despite the fact that the overall value of tokens locked on Avalanche-based decentralized finance systems fell from $15 billion in 2021 to just over $900 million in November 2022, according to DeFiLlama statistics.
“Avalanche users may be wondering, ‘What crypto winter?’ as the network recorded tremendous growth in Q4 2022,” Mega Septiandara, research analyst at Nansen, stated.
“Avalanche is primed for continuing development in 2023 as the whole Web3 area attempts to recover from the damage wrought by the FTX crash,” Septiandara noted.
Looking particularly at Avalanche’s C-Chain, the research observed that Q4 daily transactions were primarily erratic, ranging between 100,000 and 230,000 per day. Avalanche subnets, a bespoke blockchain built on Avalanche with products such as DeFi Kingdom’s DFK Subnet reaching a total of 200 million transactions on November 13, 2022, may have contributed to some of that increase. However, as compared to Ethereum, the research observed that Avalanche C-Chain transactions were relatively reliable.
The Avalanche C-Chain, or contract chain, is Avalanche’s default smart contract blockchain, allowing the construction of any Ethereum-compatible smart contract. This works in tandem with the X-Chain, which is used to transmit and receive money in the form of AVAX tokens. Avalanche also experienced a booming non-fungible token economy in Q4, with industry-leading marketplace OpenSea moving to the network.
Avalanche had many new projects, protocols, and features join its ecosystem during Q4, in addition to significant growth in overall transactions and NFT trading volumes. Notable projects include Core Web, a free, all-in-one command center that provides users with a more intuitive and comprehensive way to view and use Web3 across Avalanche and Ethereum, and JoePegs, a May NFT marketplace that has grown to be the largest on Avalanche with over $3.4 million in secondary NFT sales and over 12,000 users, according to Nansen.
