- The Total Value Locked (TVL) locked on Avalanche has dropped in recent weeks.
- However, Trader Joe, a DEX, witnessed a flurry of activity.
As of 2022, the total value locked (TVL) on Avalanche is experiencing a sustained downward trend. Despite numerous attempts to attract more users, the TVL showed no significant improvement.
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However, a DEX Trader Joe reportedly could help the Avalanche ecosystem in areas where it faces challenges. According to data from Messari, Trader Joe’s v2 has shown the fastest growth among decentralized exchanges (DEXs) in the past 180 days.
This can be attributed to the introduction of the Liquidity Book (LB), which implements a concentrated liquidity model similar to that of Uniswap V3.
Source: Messari
Notably, it was discovered that other dApps on the Avalanche network did not perceive the same level of traction as Trader Joe.
According to Dapp Radar, popular dApps on Avalanche such as Benqi, CelerNetwork, and Beefy Finance witnessed a decline in unique active wallets on the network over the past week.
Source: Dapp Radar
Still a long way to go
In addition, the Avalanche network also noted a decline in interest in the NFT market. AVAXNFTSTATS data indicated that total daily coin volume has dropped significantly for Avalanche over the past month. This implied that new NFTs were not often created on the Avalanche network.
Unfortunately, the interest in Avalanche’s blue-chip NFT collections is like Roostr and MadSkullz fell too.
Source: AVAXNFTSTATS
All of the above factors impacted the total NFT transactions.
Well, one of the reasons for the declining interest in Avalanche NFTs could be the drop in the weighted sentiment metric.
The negatively weighted sentiment implied that the crypto community’s overall view of Avalanche was not very favorable.
Source: Sentiment
On the other hand, according to data from the token terminal, the number of daily active users on the Avalanche network has dropped by 9% in the past week. Subsequently, total revenue generated also declined by 19.1%.
Realistic or not, here is AVAX’s market cap in BTC terms
Source: token terminal
If Avalanche fails to generate user interest for an extended period of time, it would be detrimental to the success of the protocol in the long run.