What's going on with Avalanche?

    Introduction

    • In this analysis, You will Read about the Avalanche chain. We want to examine some key parameters on the Avalanche chain. So, I went through Avalanche and analyze these parameters:

    • Users/New Users/Active Users

    • Transactions and Users Breakdown

    • Success Vs. Fail Transactions

    • Share of Stablecoins based on Transactions and users

    • Share of Stablecoins based on Volume

    Analyzed by Hess - Reading Time Almost 8 Min.

    What is Avalanche?

    • Avalanche (AVAX) is a cryptocurrency and blockchain platform that rivals Ethereum. AVAX is the native token of the Avalanche blockchain, which—like Ethereum—uses smart contracts to support a variety of blockchain projects.

      The Avalanche blockchain can provide near-instant transaction finality. AVAX is used to pay transaction processing fees, secure the Avalanche network, and act as a basic unit of account among blockchains in the Avalanche network.

    • Coin creation rate: The maximum supply of AVAX is capped at 720 million tokens, but AVAX users govern how fast new coins are minted. AVAX holders can control the rate of new coin creation by voting to adjust the amount of AVAX paid as a reward for adding a new block to the Avalanche blockchain.

    • Transaction fee structure: Transaction processing costs vary depending on the type of transaction and Avalanche's network congestion. All fees are burned—removed from circulation—to enable AVAX to become scarcer over time. Avalanche users vote to decide the Avalanche transaction fee, making AVAX fees subject to change.

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    Active Vs. New Users

    We already examined the total number of transactions and users. Now, Let’s examine the New users and Active user’s activity over time. I counted the total number of transactions per user and considered users with above 50 transactions since January 2022 as active users.

    • Like the Previous charts, The highest activities were between January and March 2022. The highest number of active users had activities on Avalanche at that time. Also, The total weekly number of new users was 40-50K at that time. Over time, The activity of Active users decreased. Until August 2022, The total weekly number of active users and new users dropped by 50%.
    • Right now, In November, The total weekly number of new users is below 30K, and Active users are around 30-40K. Overall, Avalanche has 230K Active users and had 1.9M New Users Since January.

    Success Vs. Failed Transactions

    Overall, Since January 2022, 15% of transactions failed and 85% of transactions were successful. Until March 2022, The weekly share of Failed transactions was up to 35% but after that decreased and reached 8-9%. Over time, There were some weeks that the share of fail transactions increased up to 14% but Week by week, The weekly share of transactions decreased to 5-10% and Successfull transactions increased up to 95%.

    Stablecoins on Avalanche

    Share of Stablecoins is always a popular topic for a chain. I examined the most popular stablecoins on Avalanche. What is the difference between normal tokens with .e ? For Example, The difference here is USDC. e on Avalanche is a “bridged form of Ethereum USDC” that was bridged from the Ethereum blockchain via the Avalanche Bridge.

    • Until May 2022, The most popular stablecoin based on transactions was USDC.e. During that time, The second most popular was USDC and the third was USDT. The weekly share of USDC.e was 35-45%. USDC shares increased from 5% up to 31% in that time. It seems USDC took USDT.e Shares in that time. Because the weekly share of USDT.e decreased from 30 to 15%.
    • USDC had The highest growth among these tokens. The weekly share of USDC increased up to 48% after May 2022 and USDT.e had the highest shrinking. On The other hand, The USDT shares increased from 3% in February to 15% in November.


    So Far, We already examine the share of transactions of Stablecoins. Now, It’s time to examine the stable volumes.

    • Since the beginning of the year, DAI.e and USDC.e had the highest volume in comparison to other tokens. But week by Week, the volume of USDC increased significantly. Also, The USDT shares increased since March 2022 and reached up to 20%.
    • Now, We can say that USDC and USDT are the most popular tokens on Avalanche.
    • I can say, USDT.e and BUSD are less popular in comparison to other tokens.

    Let’s take a quick glance of Top tokens since January 2022:

    • USDC and USDC.e and USDT.e are the three top popular tokens based on Users.
    • DAI.e, USDC, and USDC.e are three popular tokens based on Volume
    • USDC.e, USDC, and USDT are three popular tokens based on transactions.

    Users and Transactions

    Like The native token price, Users, and transactions are important to a chain too. Users can show how healthy the chain is.

    • It seems Avalanche is one of the busiest networks this year. Nearly 153M Transactions went through Avalanche by 2.52M Unique wallets. Numbers are huge. However, The bear market impacted Avalanche too.

    • Between January 2022 and May 2022, each month, More than 1M users had at least one transaction on Avalanche. After that, During the Bear market, The total weekly number of Users decreased. Right now, In November, Less than 500K users had at least 1 transaction. The monthly users of Avalanche dropped by 50-60%.

    • The highest number of transactions happened on Avalanche in February. Between January and March, Like users, Users had 25-30M transactions each month. After that the total weekly and monthly number of transactions decreased. The drop percentage was huge and was much higher than users.

    • In November, Users had lower than 4M tranasctions.

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    Method

    Avax Price

    • I extracted the WAVAX price from the price hourly table on Ethereum. WAVAX is a wrapped version of Avax on Ethereum.

    Users and Transactions

    • In order to find transactions and users, I used the fact transactions table on Avalanche.

    New Vs. Active Users

    • With the min(block_timestamp) function, I found the first transactions of users. Then, I consider them as new users of the Avalanche chain. Also, I counted the total number of transactions per user. I considered users with above 50 transactions since January 2022 as an active users.

      \

    Stablecoins

    • From , I extracted the contract address of the most popular stablecoins on Avalanche.
    • '0xb97ef9ef8734c71904d8002f8b6bc66dd9c48a6e' then 'USDC'
    • '0x9702230A8Ea53601f5cD2dc00fDBc13d4dF4A8c7') then 'USDT'
    • '0x9C9e5fD8bbc25984B178FdCE6117Defa39d2db39') then 'BUSD'
    • 0xc7198437980c041c805A1EDcbA50c1Ce5db95118') then 'USDT.e'
    • '0xA7D7079b0FEaD91F3e65f86E8915Cb59c1a4C664') then 'USDC.e'
    • '0x19860CCB0A68fd4213aB9D8266F7bBf05A8dDe98') then 'BUSD.e'
    • '0xd586E7F844cEa2F87f50152665BCbc2C279D8d70') then 'DAI.e'

    DAI and BUSD have 18 decimals, Others have 6 decimals.

    Full Analysis

    Avax Price

    One of the important parameters of a chain is its native token prices. Let’s examine the Avax (Native token of Avalanche) price and compare it with the ETH (Native token of Ethereum) price.

    • Between May and April 2022, The average price of Avax was 100 US dollars and ETH was 3.5K US dollars. After that time, The Bear market came and changed everything.
    • For a short time, After two months, The ETH price dropped 50% while Avax price dropped 80%. The AVAX price pattern was similar to ETH but Bear market impacted more on AVAX token in comparison to other native tokens.
    • Right now, In November, The ETH price is 1.1K US dollars and Avax Price is 11-12 US dollars.

    The large group of users had only 1 Transaction on Avalanche since January 2022. Almost 840K users had only Transactions. It is interesting because the second large group of users had 10-100 Transactions. There were 142K users with above 100 Transactions.

    The lowest number of Transactions belonged to the group of users with 10 Transactions.

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    THANK YOU FOR READING!

    ALL CODES AND CONTENTS WERE WRITTEN BY HESS.

    :bird: Twitter: hessaminanloo

    :t-rex: Discord: hess#0890

    :calendar: Analyze Date: 2022/NOV/30

    Conclusion

    • It is true that Avalanche's native token price, AVAX, dropped more than 80% but I can say it is normal because we are in a bear market in the Cryptocurrency world. All tokens faced that problem like ETH tokens or even BTC.
    • Avalanche attracted nearly 2M New users since the beginning of the year. Also, These users made more than 150M Transactions on Avalanche. This is a huge number.
    • Also, The stablecoin shares show that bridged stable like USDC.e or USDT.e bridged more from Ethereum to Avalanche.
    • It proves that users transferred their Stablecoins to Avalanche. If we ignore the bear market condition, I can say Avalanche is in a good direction and it is a good signal for this chain.