AVAX-denominated Avalanche revenue rose steadily by more than 10% quarter-on-quarter. In the second quarter, there was massive growth in terms of the number of interested parties.
Messari released Avalanche’s [AVAX] quarterly report on May 2, highlighting Blockchain´s performance during the first quarter of 2023. A key takeaway was that AVAX’s market capitalization rallied along with the broader market, rising 65.8% quarter over quarter (QoQ).
In terms of active users, the first quarter was not the best for the Avalanche network, as it posted a decline. Avalanche’s daily average active addresses across the C-Chain and subnets decreased by 20.7% QoQ.
However, it should be noted that the decline became evident as there was an unusual increase in active addresses in Q4, driven by an increase in NFT mintage. If the spike was missed, then the number of active addresses remained stable.
One positive development in the first quarter was that Avalanche’s revenue increased. To be precise, AVAX-denominated network revenue rose steadily by more than 10% qoq.
The increase in revenue was largely due to an 18.2% increase in transaction fees, which stemmed from the network experiencing unsettled times during the final weeks of the last quarter.
Avalanche’s State in DeFi
Blockchain’s performance in the DeFi space wasn’t the best in Q1 either, as the value of its network declined. Avalanche’s AVAX-denominated TVL decreased by more than 34%.
However, it was interesting to note that the TVL, when denominated in USD, rose 4%. According to the Messari report, this incident suggested an increase in the price of USD assets rather than a new capital inflow.
NFT Ecosystem Suffered Losses
Quite a few interesting developments happened in the first quarter that seemed bullish for the Avalanche NFT space. While the updates were positive, things were not reflected on the ground, as Avalanche’s NFT space declined in secondary sales volume by 31.6% QoQ, and the number of unique NFT buyers decreased by 9.8% in the first quarter.
Q2 Brings Good News
There was a lot of momentum in terms of participation in the second quarter. Gambling rewards data revealed that the number of AVAX participants increased by more than 103,768% in the last 30 days, and there were more than 82,000 takers.
As in Q1, Avalanche’s active addresses were flat so far in the second quarter, except for a dip on April 27, 2023. According to Artemin, AVAX’s daily transactions also increased last month, indicating higher use.
Since the beginning of the second quarter, AVAX’s development activity increased sharply. This was optimistic, as it reflected the developers’ efforts to improve the network. Its social volume was also relatively high, indicating its popularity in the crypto space.
Demand for AVAX in the derivatives market was also stable, as evidenced by a predominantly green Binance funding rate, not to mention that the bear market affected AVAX’s performance on the price front, which plunged during the second quarter.
However, things were starting to turn, as the price of AVAX increased marginally in the last 24 hours. According to CoinMarketCap, the token was trading at $16.72, with a market capitalization of over $5 billion.
Messari’s report ends by claiming that “despite the challenges, whether macro forces or technical, Avalanche looks to remain competitive, continue its growth strategies, build community, and pursue its robust plans for 2023.”
By Audy Castaneda
