avalanche [AVAX] had a tough performance in the second quarter, as did the broader crypto market. All major currencies have suffered extraordinary declines during the so-called “crypto winter” which continues to wreak havoc. However, there have been some bright spots for Avalanche’s ecosystem as it attempts to recover.
And we continue…
A recent report by Messari observed an upward trend in the total value of Avalanche DeFi locked during the second quarter of 2022. There was still an increase in the amount of AVAX locked in DeFi despite a drop in TVL in usd. This showed a high performance index for the Avalanche network. In another analysis by Messari, the performance of the broader avalanche ecosystem was covered. The report begins by addressing the ecosystem through its developer and user activity.
Developer activity saw a significant decline during the second quarter of 2022. Much of this can be attributed to the crushing market conditions. Nevertheless, single contracts fared much better in the YTD chart. This comes despite an abnormal spike in May due to Crabada’s migration to the Swimmer Network.
User activity also witnessed a similar verdict with declining numbers over the period. Daily active users and number of transactions performed even better year over year. At the start of the second quarter in April, there were an average of more than one million daily transactions. Figures in July stood at 500 daily transactions with daily users also down sharply.
Over the past 18 months, Avalanche’s EVM-enabled C-Chain has supported the creation of a robust DeFi-focused dApp ecosystem by attracting a critical mass of users and developers with its low gas fees and delays. of transactions. Currently, there are over 200 projects on the Avalanche Network.
Lending protocols are a crucial cog in Avalanche’s DeFi growth. Avalanche’s biggest application in terms of DeFi is the liquidity protocol, Aave. It is followed by BENQI Liquidity Market (BLM) and Yeti Finance. Those three make up TVL’s first three loan protocols on Avalanche.
An Avalanche indeed!
With satisfactory results across the Avalanche ecosystem, the network looks promising for the new quarter. However, AVAX continues to drop below $20 and is still down 3.5% daily. For any major upside, the network must improve the conditions surrounding the native AVAX token.