In April, Avalanche’s monthly active addresses were up 86%; furthermore, there was a 35% drop in monthly decentralized exchange (DEX) volume.
In April, the Avalanche [AVAX] ecosystem released a status report that included significant updates on network performance and platform upgrades. One of the major conclusions was the exponential growth of active addresses.
On May 17, Avalanche announced the release of said report via Twitter, as follows:
“April saw tremendous growth in activity on Avalanche, including total gas burned, NFT mints and monthly active addresses, anchored by the launch of Avaissance, Evergreen Subnets, and more! Dive into the April edition of the Avalanche Watch data report.”
Monthly active addresses across all subnets hit nearly 780,000 in April, recording a massive 86% increase from the previous month. While most of the active addresses originated from C-Chain, the smart contract layer of the network, there were also appreciable increases in active addresses coming from new subnets such as Wraptag Subnet and XPLUS Subnet.
As a result of strong demand from the network, gas fees rose to levels last seen in May 2022, the phase just before the start of the 2022 bear market. This underscored the substantial recovery of on-chain activity on the layer-1 Blockchain last month.
Avalanche Staggers on Other Fronts
While the network’s performance was impressive, Avalanche’s decentralized finance (DeFi) activity tanked in April. Additional data from DeFiLlama revealed a 35% drop in monthly decentralized exchange (DEX) volume in said period.
When it comes to the total value locked (TVL) in the network, a sharp drop was observed on April 24. However, the losses were reversed, and TVL quickly resumed its previous course.
The report also outlines the state of Avalanche’s GameFi ecosystem. DeFi Kingdoms surpassed other gaming dApps to register the most active addresses, while other GameFi projects failed to register noticeable growth.
Avalanche’s performance in the non-fungible token (NFT) landscape was mixed. While the number of new NFT mints skyrocketed, the total sales volume decreased by more than 18%.
The jump in the number of NFT mints was mainly due to NFT POAPs (Proof of Attendance Protocol) which are usually sent out as rewards to people who have attended a certain event. While these do not contribute significantly to overall sales, their development provides NFTs with a new application case.
Avalanche recently announced the launch of a new NFT marketplace, Peek NFT, whose focus is hosting NFTs that have demonstrable utility. According to the Avalaunch weblog, Peek NFT “encapsulates a state-of-the-art NFT marketplace, with (…) a clear emphasis on attributes and less on speculation”.
The NFTs hosted by Peek NFT are “not just collectibles, but specifically designed to add value to both users and the protocol itself.” Said non-fungible assets are supposed to “evolve from digital arts to financial instruments and ultimately, RWAs.”
Can AVAX Recover?
AVAX recently changed hands at $15.03, having absorbed gains of 1.21% in the last 24 hours.
The Relative Strength Index (RSI) continued to move below the neutral 50 level, implying sustained selling pressure. The moving average convergence divergence (MACD) remained in negative territory, reinforcing bearish sentiment.
During the price’s sideways swing, though, the on-balance volume (OBV) increased, suggesting an imminent bullish move.
By Audy Castaneda
