- Avalanche’s monthly transaction numbers rebounded significantly starting in 2022.
- Total locked value fell by more than 15% last quarter.
Much of the crypto market’s focus last quarter was on filing for Exchange Traded Funds (ETFs) for two of the largest assets in the space: Bitcoin. [BTC] and ether [ETH]. Rightly so, because the developments surrounding it set the market in motion.
Read AVAX’s 2023-24 price forecast
However, it was crucial not to lose sight of other cryptocurrencies that weathered the bearish market conditions of the third quarter to carve out a position for themselves.
In particular, the Proof-of-stake (PoS) network Avalanche [AVAX] earned a special mention for the key partnerships forged and the improvements in operations across the chain during the third quarter.
Marked recovery in network parameters
There is no denying that Avalanche’s key performance indicators, like other cryptos, have not been the same as they were during the peak of the bull market. That said, a significant recovery was observed according to a report by digital asset research firm Galaxy Research.
In the last quarter, Avalanche’s monthly transaction numbers bounced back significantly after the downturn caused by the market implosions of May 2022. The number of transactions did not decline after the levels peaked, but rather stabilized at those levels.
Source: Reflexivity Research/Dune
Furthermore, the number of people interacting with the blockchain has skyrocketed. The monthly number of active users peaked at around 1 million in recent months.
Source: Reflexivity Research/Dune
The report attributes the turnaround in network usage to a slew of high-profile partnerships that Avalanche has established in recent history. Subnets, or application-specific blockchains, attracted players in decentralized finance (DeFi), gaming and non-fungible tokens (NFTs).
However, the success of the networking activity did not lead to a commensurate capital influx into the Avalanche ecosystem. The total value locked (TVL) fell by more than 15% last quarter.
The curve finances [CRV] Hack and the resulting FUD were seen as one of the main causes of the decline, according to Galaxy Research.
However, over the past month, TVL has remained fairly stable, hovering around $1.25 billion.
Source: DeFiLlama
Avalanche’s key partnerships
The report noted that Avalanche was working with players from “both the crypto and traditional finance sectors” to expand its footprint.
One of the most high-profile partnerships of the third quarter was decentralized exchange (DEX) Balancer [BAL] expand to the Avalanche chain.
The protocol with a TVL of $694 million at the time of writing, this is aimed at leveraging Avalanche’s increased throughput and scalability benefits to introduce new DeFi capabilities.
Balancer’s focus was primarily on the liquid staking market. It joined forces with liquid staking token (LST) protocols on Avalanche to make yield-bearing assets available to liquidity providers.
In addition to Balancer, other DEXs such as Multiswap have also signed on to Avalanche, giving users the right to exchange hundreds of tokens in a single transaction.
While its partnerships with Web3 entities were commendable, Avalanche also attracted major entities from the Web2 world.
Japanese data marketing company Loyalty marketingin partnership with blockchain service provider PlayThink, turned to Avalanche subnets to launch its popular loyalty rewards program.
The transition, which is expected to take place by the end of the year, would involve the distribution of NFTs to its existing multi-million user base.
A little earlier in July, Solert gamesa pioneer in online gaming, announced the launch of a subnet to capitalize on the growing opportunities for growth in blockchain gaming.
Notably, Solert Games co-founder and CEO said this move would combine the social dynamics of Web2 with the user-centric decentralization of Web3.
The international gaming studio was home to more than 160 games, with a cumulative download of more than 20 million.
AVAX faces resistance at these levels
High-profile partnerships like these and many more gave the AVAX fanbase hope for the long term.
Interestingly, AVAX climbed all the way to $11 last weekend for the first time in over a month. However, it hit a barrier of $11.5 and has since fallen back to $9.72 at the time of writing, data from CoinMarketCap showed.
Realistic or not, here is AVAX’s market cap in BTC terms
A recent Holders are dumping their AVAX tokens to make up for the losses incurred.
Therefore, it would be interesting to observe AVAX’s trajectory once it breaks this barrier.
Over the weekend, AVAX rose past $10 but met significant resistance around $11.50. This coincides with on-chain data showing that historically more than 747,000 addresses have been acquired $AVAX between the price range of $11.62 and $12.93.
In bearish conditions… pic.twitter.com/aDbwniCbYY
— IntoTheBlock (@intotheblock) October 9, 2023