- Avalanche user activity increased by 154% thanks to improvements in DeFi and stablecoins.
- Collaboration with Cercia and potential AirDrop sparked interest in Avalanche.
Apart from arbitration [ARB]the Avalanche [AVAX] protocol has seen the largest growth in user activity since early 2023.
Read Avalanches [AVAX] Price forecast 2023-2024
Avalanche shows dominance in DeFi
On May 28, Twitter account @Flowslikeosmo revealed an impressive 154% increase in users on Avalanche since the start of the year.
$AVAX users are up +154% YTD.
But what causes this increase in activity?
5 graphs to explain the growth of @avax.
pic.twitter.com/9Tjq9CVhZ2
— Emperor Osmo
(@Flowslikeosmo) May 28, 2023
This steady increase in user numbers can be attributed primarily to the booming DeFi and stablecoin sectors, which accounted for approximately 34% of all on-chain activity within the protocol.
Source: Artemis
Leading DeFi protocols, such as BenQi and GMX, were instrumental in driving Avalanche’s growth. Recent data from DappRadar indicates a surge in the number of unique active wallets associated with these protocols over the past week.
In addition, the number of transactions within the BenQi protocol had increased remarkably by 12.29% during this period.
Source: Dapp Radar
Can it change in the future?
However, it’s important to recognize that AirDrop fighters can further fuel activity. Rumors of an upcoming AirDrop by Layer Zero labs, heavily connected to Avalanche, may have caused this surge in activity. If the expected AirDrop materializes, it could potentially lead to a decrease in activity.
However, despite the significant increase in user activity, AVAX, Avalanche’s native cryptocurrency, has not reflected this growth. The price has been falling in recent weeks and fluctuated within the range of 15.49 and 13.68 levels.
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During this period, the On-Balance Volume (OBV) metric experienced a notable decline. However, there is a positive development indicated by the growth of the Awesome Oscillator indicator, which reached a value of 0.14.
Source: Trade View
Looking ahead, Avalanche’s recent partnership with the Swiss FinTech firm Cercia has the potential to positively impact the price of AVAX. As the protocol continues to improve its ecosystem and attract partnerships, its growth trajectory remains an area of interest for investors and enthusiasts alike.