Avalanche On-chain Activity Doubles in 2023
Trader Joe, Stargate and WooFi Drive Growth
By: Samuel Haig •DeFi News
Activity on Avalanche, a proof of stake Layer 1 blockchain, has more than doubled this year, marking a resurgence for the network.
According to data from Messari, Avalanche has seen 60,000 daily active addresses as of early June, up from around 25,000 at the start of the year.
The increased activity follows a sharp decline in Avalanche’s total value locked and market capitalization. The value proposition of low-cost Layer 1 networks was undermined by the rise of Layer 2 networks and plummeting transaction fees on Ethereum amid the bear market.
Avalanche’s TVL now sits at $701M, down 94% from its late 2021 all-time high, while its AVAX token has similarly cratered 91% over the same period. Despite a strong start to 2023, AVAX is now trading flat on the year.
Trader Joe Fuels Growth
Messari partly attributed the spike in on-chain activity to the increasing popularity of Trader Joe, the network’s top decentralized exchange.
Trader Joe is Avalanche’s third-largest DeFi protocol with $65.5M, according to DeFi Llama, and the network's second most popular dApp with more than 255,000 unique users over the past 30 days, according to DappRadar.
Over the past 24 hours, Trader Joe processed $127.65M worth of trades in 24 hours across all deployments.
The number of active users for Stargate, a cross-chain bridge that is the network’s fifth-largest protocol, grew by more than a quarter in 30 days, signaling high levels of activity between Avalanche and other networks.
WooFi, a cross-chain decentralized exchange, also posted impressive growth over the past month, emerging as Avalanche’s 3rd-most used dApp following a 28% increase in active users. WooFi’s TVL also grew 10%, positioning it as Avalanche’s 15th largest dApp.
Avalanche’s developer community also remains active, with 1,607 devs contributing more than 10,000 Github repositories over the past 30 days, according to Ethan Francis of Chainstack.