What is the Future of Avalanche Ecosystem? An On-Chain AVAX Analysis

What is the Future of Avalanche Ecosystem? An On-Chain AVAX Analysis

Avalanche (AVAX) is having an explosive year, according to an independent on-chain analysis provided to Techopedia today.

In a Web3 industry where many decentralized technologies and protocols are looking to carve their niche and find adoption, Avalanche surged ahead in the fourth quarter of 2023 based on the report by blockchain analyst Flipside.

Avalanche experienced two big surges in on-chain activity, peaking at 6.4 million transactions on November 22, 2023 and 6.3 million transactions on December 18, 2023 — both events which led to sustained growth and usage.

We explore the findings and ask other analysts for their views.

Key Takeaways

  • Avalanche experienced significant spikes in on-chain activity during the Q4 of 2023, with transaction volumes peaking at 6.4 million and 6.3 million on November 22 and December 19, respectively.
  • The surge in on-chain activity catalyzed sustained growth for Avalanche, with new user growth surpassing active users by more than 17%.
  • The total value locked (TVL) on Avalanche crossed the $1 billion mark and remained above it, driven by high-profile DeFi protocols like Benqi Finance and Trade Joe.
  • Beyond on-chain activity and DeFi growth, Avalanche witnessed other notable trends in Q4 2023, including a rise in the daily market capitalization of real-world assets (RWAs) and significant developments in blockchain gaming and NFTs.

On-chain Spikes Catalyzed Sustained Growth

In the fourth quarter of 2023, Avalanche witnessed two major spikes in on-chain activity, which, according to the report, “catalyzed sustained growth.”

The first spike, which occurred on November 22, 2023, was initiated by the launch of the ASC-20 token standard, which aimed to promote the development of the Avalanche blockchain and increase transaction volume on the network at the time of launch.

According to Flipside, the attention the ASC-20 tokens received was “immediate and intense — likely bolstered by the interest in Bitcoin Ordinals earlier that month.”

Prior to the launch of the ASC-20 token standard, daily transactions on the Avalanche network stood below 400,000 in early October 2023  —but climbed to 2.35 million on October 19, 2023, and reached a peak of 6.36 million on November 22.

The second spike came on December 19, 2023, and was driven by a burst of activity in memecoin-linked accounts.

The report highlighted:

“Daily transactions picked up again by early December, remaining above 1M from December 07 to January 02. This sustained surge resulted from two major factors: ASC-20 activity and memecoin transactions (centered on COQ, HUSKY, SHIBX, RPG, and others).”

Another brief spike on the Avalanche network occurred in mid-December 2023, as the number of daily new swappers briefly surpassed the number of active users on the Avalanche network during the peak of Avalanche’s non-fungible token (NFT) mania.

The data further suggests that new users are “organically arriving and staying active,” with the network gaining traction sustainably  —no dropping back down to previous levels.

Sustained Liquidity, Diverse Protocol Offering & Platform Dominance Capture DeFi Growth

In early Q4, the total value locked (TVL) on Avalanche in USD began to steadily rise and crossed the $1 billion mark on December 6, peaking at $1.53 billion two weeks later on December 21, and remained above the $1 billion mark as of the time of the report’s publication.

The surge in Avalanche’s TVL can be attributed to a number of high-profile protocols and decentralized exchanges (DEXs), including Benqi Finance, Aave, Struct, and Delta Prime. In particular, Benqi made up over 40% of Avalanche’s TVL by the time of its all-time high.

In addition, by the end of 2023, Trader Joe’s trading volume had increased by more than 570% and accounted for over 80% of Avalanche’s total decentralized finance (DeFi) swap volume at its peak on December 21.

“That said, the ownership of [Trader Joe’s] overall Avalanche DeFi volume only increased by 4% between the start and end of Q4 2023 – from just below 70% to over 74%. This signals that Avalanche’s DeFi ecosystem is rapidly expanding, including, but also beyond, the chain’s leading DEX.”

Other Growing Trends on Avalanche

Apart from a spike in on-chain activity and a TVL surge, the Avalanche network has seen an array of other growing trends in Q4 of 2023, including an increase in the daily market capitalization of real-world assets (RWAs) and a number of gaming and metaverse projects being deployed on the network.

Avalanche and Real-World Assets (RWAs)

Even though much of Avalanche’s RWA activity is not available for public view, Flipside’s report suggested that RWAs had gained traction in the fourth quarter of 2023 with a notable 44.7% increase in their daily market cap, showcasing a promising trend towards tokenization and trading of real-world assets on the network.

This surge was aided by Avalanche’s structure, which prides itself in high throughput, rapid transaction finality, and low transaction costs.

In addition, the chain’s structure allows for the creation of private subnets that can be customized to meet the specific needs of both investors and regulators.

It is also important to note, that by the end of the quarter, 98.3% of all RWA volume came from EUROC, the Euro-linked stablecoin on the Avalanche network.

Avalanche and Blockchain Gaming

The Avalanche network really benefited from a number of gaming and metaverse projects that either deployed or migrated to it.

Daily user volume had quadrupled since Q4 from 9,994 users at the start of October to 40,497 by the start of February 2024.

The report highlighted:

“In terms of on-chain activity, January’s total daily transaction volume grew by 36.4% relative to last October (19.2M transactions vs. 14.1M). Especially noteworthy, this user and transaction growth is increasingly distributed across new subnets and projects.”

In December 2023 the daily transaction volume of newly deployed contracts had risen to 22.4 million, with most subnets continuing growth into the first quarter of 2024.

Avalanche and NFTs

On top of successes in RWAs and blockchain gaming, Hyperscape, the multichain NFT marketplace on Avalanche, had accounted for 99% of NFT sales as of 7 February 2024, managing to beat some of its biggest competitors in the sector.

The report highlighted:

“Initially, NFT market activity was led by Salvor and Joepegs, which accounted for 60.9% and 22.1% of NFT sales as of Oct 01, 2023. However, Hyperspace surged past the competition on October 17, and its market share of NFT sales hasn’t fallen below 50% ever since, aside from a brief dip in early November.

“Based on on-chain data, Hyperspace can essentially be considered the only major player in this space, as of February 2024.”

The success of Hyperscape could be attributed to it being the first Ethereum virtual machine (EVM) chain on the Avalanche network that opened doors for new cross-chain trading possibilities between Avalanche and other prominent layer-1 chains like Solana and Sui.

Other Avalanche Milestones of 2023 & 2024

Date Event
March 21, 2023

(Community)

Galxe expands to Avalanche, accelerating NFT-based community growth.
March 30, 2023

(Community)

Avaissance is announced to fund and mentor digital artists
April 5, 2023

(Gaming)

Ava Labs announces partnership with SK Planet to launch UPTN subnet.
April 25, 2023

(Ecosystem)

Avalanche completes Cortina upgrade, streamlining operations and introducing several key changes.
May 24, 2023

(Ecosystem)

AvaCloud launches — a web3 launchpad to build no-code ecosystems
May 25, 2023

(DeFi)

Circle launches euro-based stablecoin EUROC on Avalanche.
June 09, 2023

(Gaming)

Avalanche announces Arcad3, accelerating web3 development among traditional gaming studios
July 25, 2023

(DeFi)

The Vista initiative pledges to purchase $50M USD of tokenized assets
August 30, 2023

(Ecosystem)

Avalanche begins testing Teleporter, an EVM cross-chain messaging protocol
September 07, 2023

(Gaming)

Stars Arena launches, driving unprecedented on-chain demand for Avalanche in 2023
September 11, 2023

(Ecosystem)

Testing of Avalanche’s HyperSDK registers 143,000 tps
October 03, 2023

(Ecosystem)

Firewood is unveiled to scale Avalanche’s database system
October 17, 2023

(Community)

Avalanche launches multi-million AVAX NFT incentive program with Hyperspace
November 09, 2023

(Community)

The Avalanche accelerator program Codebase is announced
November 15, 2023

(DeFi)

Citi pilots FX Solution with Avalanche under Project Guardian
November 16, 2023

(DeFi)

JPMorgan demonstrates proof of concept of tokenization on Avalanche
November 17, 2023

(DeFi)

Republic announces its plan to launch the Republic Note on Avalanche
December 07, 2023

(Ecosystem)

Avalanche Enters the top 10 assets by market cap
December 12, 2023

(Gaming)

Mirai Labs ports over to Avalanche, augmenting its growing GameFi ecosystem
January 27, 2024

(Ecosystem)

Scaling solution Vryx is announced, with plans to implement it on the HyperSDK testnet.

Future Predictions and Analyst Comments

Anndy Lian, cryptocurrency expert and the author of NFT: From Zero to Hero, told Techopedia that Avalanche’s recent successes could be attributed to the chain’s “Web3 efforts.”

“Firstly, its NFT Dokyoworld twice became the top traded NFT collection across all chains. Secondly, their gaming sector gained good traction when TSM’s Blitz App Subnet went live, processing transactions for their premium service. They even promised more features to come later in Q1 2024.

“Thirdly, their inscriptions market is also picking fairly well with strong Asian supporters. The increase in activities helps drive their price upwards.”

Lian is bullish on the future of the Avalanche network, noting that its native cryptocurrency, AVAX, could break the $40 barrier in the next two weeks if positive sentiment continues. You can read our full Avalanche price prediction here.

With new users organically joining the network, overall future sentiment for the Avalanche network stands bullish.  Since October 2023, over 12,000 deployers have created over a quarter million contracts, showcasing strong, smart contract development on Avalanche despite fluctuations in on-chain transactions and fees.

 

 

Source: https://www.techopedia.com/future-of-avalanche-avax-on-chain-analysis

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Panel Discussion- Reimagine Media & Content Ecosystem with Web3 & AI

Panel Discussion- Reimagine Media & Content Ecosystem with Web3 & AI

Media and entertainment are constantly changing. This change is crucial to how we enjoy the content, use technology, and safeguard user data. Web3 and AI (Artificial Intelligence) are new technologies that transform the landscape further. They affect how we enjoy content, use technology, and safeguard user data. A panel discussion with Feida Zhu, Associate Dean at SMU; James Liu, Director at Alibaba Cloud; Raymond Chung, CTO at ZEASN; and Anndy Lian, Advisor at Bybit, explored this topic.

AI and the New Era of Contents

Smartphones and portable devices have reduced traditional TV viewership. People want more convenient and interactive content consumption. This shift makes experts wonder about TV’s future. Many think that AI can make TV more interactive and engaging. AI can give personalized suggestions, enable real-time interaction, and improve the viewing experience. AI-powered TVs can follow voice commands, adjust to users’ tastes, and even provide educational content for kids.

Anndy commented: “AI can transform TV from a passive experience into an interactive one. Imagine a world where your TV is not just a screen but a knowledgeable companion. It can ask what kind of movie you’d like to watch, suggest content based on your preferences, and even help you with tasks like gaming or education.”

He added that AI can play a significant role in generating high-quality content. By using AI technology, content producers can create engaging, diverse, and unique content, ensuring that there is always something exciting to watch.

Raymond shared his experience: “The integration of AI technology into the content creation process is another exciting prospect. With AI’s ability to generate high-quality content, it becomes possible to produce many new, engaging materials. This means AI can generate dynamic, interactive, and even personalized content, enhancing the user’s experience.

AI’s capabilities can extend beyond entertainment to areas like education and gaming. For instance, AI can create educational content tailored to a student’s learning style or generate interactive gaming experiences that adapt to a player’s skills and preferences. With AI, content creation is limited only by our imagination.”

Web3, Blockchain and the Promise of Transparency

Web3 technology is becoming more important in the entertainment industry. Web3, based on blockchain and decentralized networks, wants to create a safe and clear space for content creators, users, and service providers.

“One major advantage of Web3 is data privacy and security. Traditional platforms often collect massive amounts of user data, raising concerns about privacy and data breaches. With Web3, data can be stored securely on decentralized networks, ensuring users have more control over their personal information.” James explained.

Feida continued by say that Web3 also enables creators to tokenize their influence. Using blockchain, content creators can create and manage their tokens, representing their influence or popularity. These tokens can be traded or used within the ecosystem, creating a more fair and sustainable economy for content creators and their audiences.

Blockchain’s transparency can also prevent piracy issues. It can check and confirm content ownership, making illegal content distribution difficult. AI can better engage users with trust and control. We need to be careful of fake and altered content. Blockchain can help as a control tool. By using blockchain to check content’s authenticity, we can ensure that what we see and hear is real.

Blockchain can also give transparency and accountability, which are important for fighting misinformation and supporting reliable content. By mixing AI’s creativity with blockchain’s security, we can make a safer and more immersive digital space.

In Summary

AI, Web3, and data privacy and security transform entertainment. They affect how we enjoy content, create and distribute it, and safeguard our data. They also offer the entertainment industry new opportunities and challenges.

We need to use these technologies well and care about data privacy and ethical AI. The entertainment industry will soon face a big change, and only those who can adjust to the new situation will succeed in the digital age.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Unleashing the power of Web4.0: An intelligent and decentralised web ecosystem

Unleashing the power of Web4.0: An intelligent and decentralised web ecosystem

The internet has transformed the way we live, work, and connect with each other. From the early days of the World Wide Web to the rise of social media and e-commerce, the internet has become an integral part of our daily lives. However, it is clear that the current internet infrastructure has its limitations, including issues related to centralization, data privacy, and lack of intelligence. Enter Web4, a new vision for an intelligent and decentralized web that addresses these challenges and unlocks a world of new possibilities.

Understanding Web4:

Web4 represents a paradigm shift in how we envision and interact with the internet. It builds upon the principles of Web3 (decentralization) and integrates advanced technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT) to create a more intelligent and decentralized web ecosystem. Web4 aims to empower individuals, enhance privacy, and foster innovation while leveraging the potential of AI to provide personalized and context-aware experiences.

Key Features of Web4:

Decentralization: Web4 embraces the core tenets of Web3, ensuring that power and control are distributed across a network of interconnected nodes. By moving away from centralized entities and adopting decentralized architectures such as blockchain, Web4 reduces the risk of single points of failure, censorship, and data breaches. This decentralized approach fosters trust, transparency, and resilience in the web infrastructure.

Artificial Intelligence: AI is at the heart of Web4, enabling intelligent automation, data analysis, and decision-making. Through machine learning, natural language processing, and computer vision, Web4 systems can understand and interpret user data, preferences, and behavior. This allows for personalized recommendations, intelligent assistants, and context-aware applications that adapt to individual needs and provide a more intuitive and efficient user experience.

Enhanced Privacy and Security: Web4 prioritizes user privacy and data security. It leverages cryptographic techniques and decentralized identity systems to empower individuals with greater control over their personal information. With Web4, users can choose how their data is shared and accessed, reducing the risks associated with centralized data storage and surveillance. This focus on privacy strengthens user trust and encourages widespread adoption.

Interoperability and Open Standards: Web4 promotes interoperability and open standards, allowing different applications and platforms to seamlessly communicate and share data. By embracing common protocols and APIs, Web4 enables the creation of a vibrant ecosystem where innovative solutions can easily integrate and collaborate. This fosters competition, diversity, and rapid technological advancements, benefitting users and driving innovation forward.

Democratization of Innovation: Web4 empowers individuals and small businesses by reducing barriers to entry and enabling participation in the digital economy. Through decentralized platforms and smart contracts, Web4 enables peer-to-peer transactions, crowdfunding, and new funding models such as initial coin offerings (ICOs) and decentralized finance (DeFi). This democratization of innovation ensures that the benefits of the web are accessible to all, irrespective of geographical location or financial resources.

Potential Applications:

Web4’s intelligent, decentralized nature opens up a wide range of potential applications across various sectors:

Governance and Democracy: Web4 can facilitate transparent and decentralized governance models, enabling citizen participation, voting systems, and smart contracts that automate governance processes. This can lead to more accountable and inclusive decision-making at local, national, and global levels.

Supply Chain and Logistics: Web4 can revolutionize supply chain management by providing real-time tracking, transparency, and traceability. By leveraging blockchain and IoT technologies, Web4 enables secure and efficient supply chain operations, reducing fraud, improving product authenticity, and optimizing logistics processes.

Healthcare and Telemedicine: Web4 can transform healthcare by enabling secure and interoperable health records, personalized medicine, and telemedicine services. AI-powered diagnostics, remote monitoring, and decentralized data sharing can improve patient outcomes, facilitate research, and enhance collaboration among healthcare providers.

Smart Cities and Sustainability: Web4 can contribute to the development of smart cities that optimize resource usage, enhance energy efficiency, and improve urban planning. Through intelligent sensor networks and data analytics, Web4 can enable real-time monitoring, predictive maintenance, and sustainable infrastructure management.

Conclusion:

Web4 represents a bold vision for the future of the internet, one that embraces decentralization, artificial intelligence, and user empowerment. By combining these elements, Web4 has the potential to revolutionize various industries, enhance privacy and security, and democratize access to innovation. However, realizing the full potential of Web4 requires collaboration, standardization, and ethical considerations to ensure that the benefits are accessible to all while safeguarding user rights and societal values. As we embark on this new era of the web, let us envision and build a future that empowers individuals, fosters innovation, and creates a more inclusive and intelligent digital world.

 

 

Source: https://www.financialexpress.com/business/blockchain-unleashing-the-power-of-web4-0-an-intelligent-and-decentralised-web-ecosystem-3111477/

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j