Avalanche’s network value climbed by 3.3%, but its overall income decreased by 94.1%, according to a Messari analysis. The third quarter of 2022 had a lot of ups and downs for (AVAX).
Avalanche remained committed to its objective to digitize all assets, improve the network’s functionality, and extend horizontally using architectural design and subnets throughout Q2 despite the general market drop. With the help of Core, a Web3 operating system, user access was increased.
With the launch of NFT markets like Trader Joe’s Joepegs and GameFi innovations, the ecosystem also proceeded to grow into DeFi and beyond. In the end, the Avalanche ecosystem’s growth continued, and the network kept its eye on the long term.
The daily transaction volume and transaction fees have decreased by 65.5% and 76.2%, respectively, despite the network’s integrations with platforms like Core, THORChain, and Boba Network showing increasing real-world usage, according to Messari.
Avalanche Rush is also witnessing a downfall
Avalanche Rush, well-known decentralized finance (DeFi) incentive scheme, has also been losing value, with its total value locked (TVL) dropping by about 27% “in both USD and AVAX Quarter over Quarter (QoQ).”
Along with DeFi, AVAX’s market conditions for non-fungible tokens (NFT) were unfavorable. NFT sales volume and unique customers on the network have decreased by more than 88% and 34%, respectively. Data from Messari, however, shows that the number of unique sellers has climbed by 25%.
The AVAX network is a decentralized smart contract platform based on Proof-of-Stake (PoS). It distinguishes itself by developing and executing the “Avalanche consensus” consensus family. The Avalanche mainnet was introduced in September 2020, following years of study, and included the introduction of a multichain architecture employing three chains.
Additionally, the number of active addresses each day reversed the trend, falling from an estimate of 63,000 in Q2 to an average of 38,000 in Q3.
The network’s average daily transaction fees fluctuated throughout 2021 and into Q1 2022 as the network’s use and financial indicators increased. Lower average transaction costs were made possible by a number of Apricot Phase 5 releases and Avalanche Go (Apricot Phase 6), which were both introduced in Q3.