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

In our Premium member environment, we received several requests this week for fundamental analysis for this project. For this reason, today we are looking at recent developments around this project, on-chain data, and more. Would you like to join the discussion on this project or are you considering taking a position? In our Discord community for members, experienced analysts and traders share various technical analyzes on a daily basis. AVAX is also regularly discussed here. In this way, together with other members, we try to stay ahead of the market and find the right entry and exit times.

Just to update, what is Avalanche (AVAX)?

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

Latest news / recent developments

An interesting recent development around the Avalanche ecosystem is the news that a potential new investment round for Avalanche is coming up. Avalanche is reportedly looking to raise $350 million. If this investment round goes ahead, 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 wants to focus more and more on a number of other popular sectors. Avalanche has made available an amount of 290 million dollars for the development of the so-called multiverse. The Multiverse consists of several subnets, a way to build secure and reliable networks on a main network, it is mainly aimed at the blockchain gaming sector, decentralized finance (Defi), non-fungible tokens (NFT) and institutional use cases. This money is used to encourage developers to submit interesting projects.

Data Analytics Avalanche and On Chain (AVAX)

Total value stored on the Avalanche blockchain

Source: DefiLama

Avalanche position based on TVL

Source: DefiLama

What do we see in this graph/data?

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

The second image shows that this value is made up of 207 different projects built on Avalanche. From this information it can also be concluded that the Avalanche blockchain is very popular for DeFi projects and developers. We can see that Avalanche is in third place according to TVL. A total of 207 DeFi projects have been built on Avalanche with a total value of $5.27 billion. The TVL is quite similar 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. Of course, this is because Avalanche focuses on this as well. The platform is set up in such a way that developers can create different applications using smart contracts. So Avalanche is very good for what it is intended for, which is always a good feature for a project.

Furthermore, it is clear that Avalanche is a very important player in the field of DeFi. Applications built on Avalanche are actually widely used. However, Avalanche will not be able to match the platforms above it for the time being, namely Binance Smart Chain (BNB) worth $8.51 billion and Ethereum (ETH) worth $70, 32 billion.

Top Ten Avalanche Built Projects (AVAX)

Source: DefiLama

What do we see in this graph/data?

The ten largest projects built in 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 that ranked number four. In second place is Trade Joe (JOE), a decentralized exchange (DEX). Another notable project making the top ten is Curve (CRV). Along with AAVE, it is in the top 100 based on market value.

What can we conclude from this?

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

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

Source: Mesari

What do we see in this graph/data?

Above, we take a look at the financial aspect of Avalanche, through the quarterly results of 2021 and the first quarter of 2022. From 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 second quarter of 2021, there were only 3,588. In the 1Q 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 fallen from $0.87 per transaction to $0.67.

What can we conclude from this?

It’s clear from these numbers how fast Avalanche is growing. There are a lot more active wallet addresses, which means the network gets used more and more, more transactions take place in less time, and the network gets cheaper by the quarter. These are all signs that the network is working well.

Social numbers are declining

Source: Sentiment

What do we see in this graph/data?

In the graph above we can see that the number of followers on Twitter (blue line) of Avalanche is decreasing. Furthermore, we see that the number of active users on Telegram (red line) is also stagnating.

What can we conclude from this?

From this we can conclude that, despite the fact that the project is doing well in terms of figures, the interest in the platform’s social networks continues to decline. However, it is not clear exactly what causes this. It can be for several different reasons. It is possible that people have lost interest in the posts that Avalanche puts on their Twitter or, for example, because the market is not doing well with all cryptocurrencies and people are less involved with the market. Also, of course, it could also have to do with sentiment in the market. Sentiment is very negative at the moment due to the harsh crash of the last few weeks. However, this does not mean that the social networks of a project cannot grow. Elrond is a good example of this. Still, it’s an interesting fact to keep in mind.

Buy or sell Avalanche (AVAX)?

The crypto market is volatile and market sentiment fluctuates constantly and is heavily 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 an answer to your buy or sell question, we’d like to refer you to our Discord group for members. There, our experienced analysts and traders analyze their own entry and exit points on a daily basis. We also regularly share additional price analysis and project updates that we have discussed earlier in this section. Through Discord we are able to share knowledge with each other 24/7 and we try to stay ahead of the market together with our members.

Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and advice provided on this website is based on the knowledge and experience of our own analysts and is for educational purposes only.

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