Important crypto news for Avalanche (AVAX): the blockchain has reportedly experienced 1,500% transaction growth in 2022.
Such activity came even as the TVL of DeFi on Avalanche slipped from a peak of $15 billion in 2021 to just over $900 million in November 2022.
Crypto news: transactions on the Avalanche blockchain
Transactions on the Avalanche blockchain grew as much as 1,500% last year compared to 2021, even as the broader industry saw the collapse of several centralized crypto players and entered a technical bear market.
As part of Avalanche’s fourth-quarter report shared by CoinDesk, analytics firm Nansen said the network has shown strength with notable increases in both the trading volume of Non-Fungible Tokens (NFTs) and the overall number of transactions.
In this regard, Nansen stated the following:
“While the network ended November 21, 2021, with nearly 27 million transactions, Avalanche’s cumulative total surpassed 450 million transactions on November 21, 2022, marking a staggering 1,507% increase in just one year.”
As anticipated, such transactional activity came even as the total value of locked tokens on Avalanche-based decentralized finance applications slipped from a peak of $15 billion in 2021 to just over $900 million in November 2022, DeFiLlama data show.
Mega Septiandara, research analyst at Nansen, said:
“Avalanche users may find themselves asking, ‘Which crypto winter?’ as the network posted impressive earnings in Q4 2022. With strong transaction totals and NFT trading volumes pairing well with new features and products set to enhance the user experience, Avalanche is poised for continued growth in 2023 as the entire Web3 space works to recover from the chaos caused by the FTX crash.”
Summary
Focus on Avalanche’s transactions
Looking specifically at Avalanche’s C-chain, the report found that daily transactions in the fourth quarter were mostly volatile, ranging from about 100,000 to 230,000 transactions per day.
Part of this growth could come from Avalanche subnets, a custom blockchain built on Avalanche with products such as DeFi Kingdom’s DFK subnetwork that totaled 200 million transactions on 13 November 2022.
Compared to Ethereum, the report found that Avalanche C-Chain transactions were relatively stable. Avalanche C-Chain, short for contract chain, is the default smart contract blockchain on Avalanche, which allows the creation of any Ethereum-compatible smart contract.
It works in a complementary way to X-Chain, which is used to send and receive funds in the form of AVAX tokens. Elsewhere, Avalanche saw a thriving market for non-fungible tokens throughout the fourth quarter, with the likes of OpenSea, the market leader, expanding to the network.
In addition to substantial growth in overall transactions and NFT trading volumes, other key developments Avalanche saw during the fourth quarter included several new projects, protocols, and features joining its ecosystem.
Notable projects include Core Web, a free all-in-one command center that offers users a more intuitive and comprehensive way to view and use Web3 on Avalanche and Ethereum.
Also of note is JoePegs, an NFT marketplace launched in May that has grown to become the largest on Avalanche with over $3.4 million in secondary NFT sales and over 12,000 users, Nansen noted.
Parenthesis on the price of Avalanche crypto (AVAX)
Regarding the price of the crypto Avalanche (AVAX), it can be said that its prices reached new highs on 2 February at $22.78. However, it is worth noting that, from 27 January onward, the bullish directionality has sagged considerably.
Starting on 30 December, when lows were marked at 10.58, the crypto had finally regained momentum and liquidity to be able to face a recovery, and had moved over the next 28 sessions maintaining an average increase of +5.75% per day.
In the last 13 sessions, the swing has remained contained between 18.74 and 22.78, and repeated trend changes have developed within this range. However, the charts show the absence of changes to the underlying bullish scenario, so the current phase of non-directional oscillation should be regarded as part of the developing bullish trend.
The essential fact is that the values have so far managed to respect the highs of the weeks of 9 and 16 January, which represented the “old” short-term resistances and are now fulfilling support functions.
Examining the situation on the 30-minute bar chart, it can first be seen that supports have risen again since January. Beginning from that date, the values rose from 17.53 to 22.78, before starting the slight decline that is still ongoing.
So the first bullish target was reached, but not the main target at 23.18/23.20.
In any case, the price of Avalanche has risen 0.74% in the last 7 days to 7.27% in the last 24 hours. In the last hour, the price has decreased by 0.37%. The current price is €18.40 for AVAX.
The price of Avalanche is 86.53% lower than the all-time high of €136.61. The current outstanding bid is 315,125,667.228 AVAX.
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