Introduction

• Avalanche is a platform for creating custom blockchain networks and decentralized applications (dApps). Created by Ava Labs, the Avalanche crypto platform is one of many projects seeking to unseat Ethereum as the blockchain ecosystem's most widely utilized smart contract platform.

• Avalanche features 3 built-in blockchains: Exchange Chain (X-Chain), Platform Chain (P-Chain), and Contract Chain (C-Chain).

• The Contract Chain is the default smart contract blockchain on Avalanche and enables the creation of any Ethereum-compatible smart contracts. This blockchain is for applications that require total ordering (for faster asset transfers or any other commutative application, use the Exchange Chain).

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Methodology

In order to go through this analysis, I have used avalanche.core.fact_event_logs as the main table. The USDC token address is considered to be 0xB97EF9Ef8734C71904D8002F8b6Bc66Dd9c48a6E

The Mint-to-Burn Ratio is a factor mostly dependent on supply and demand and correlates to the token price, as the demand increases, the minting increases and also the price goes up. As the supply is more than demand, the burning increases and the price falls.

All analysis is based on Flipside data

Objectives

• What is the average amount of USDC transferred vs swapped?
• Show number of unique swapper addresses vs transfer addresses by day for USDC
• Lets look at the volume of USDC mints and burns since 7/1
• How many unique wallets are minting and burning USDC by day?
• What is the average mint vs burn for USDC by day?

Swaps vs Transfers

Mint vs Burns

Key Notes and Findings

• The number of wallets swapping and transferring seem to be balanced.
• But in the total volume, average volume and in daily normalized volume we can see that transfers consist more than 70% of the deal.
• Some spikes can be seen in average and total daily volume, like on June 28th
• which is around the days of market crash.

Key Notes and Findings

• The mint vs burn volumes almost correlate with the activity on swaps and overall trading of a specific token.
• In a balanced state of supply and demand and hence price, the amount of burn and mint should be balanced for a specific period of time.
• For $USDC as it is a very important cross-chain stable-coin, we can say the demand is at a stage where mint is always ahead of Burning of the token.
• Minter addresses are also almost 2X more than Burner ones.