Avalanche (AVAX) lost its form in Q1, will Q2 be any different?

Messari has just released its quarterly report for Avalanche (AVAX), which shows how the blockchain will perform in the first quarter of 2023. The key highlight was AVAX’s capitalization recovering in tandem with the overall market, up 65.8% QoQ.

Avalanche First Quarter Results Summary

The first quarter was not the best quarter for the Avalanche network in terms of active users, as the number recorded a significant decline. Avalanche’s average daily active addresses on C-Chain and subnets decreased by 20.7% quarter-over-quarter.

However, it should be noted that the recorded drop was due to an unusual increase in the number of active addresses during the fourth quarter. The reason comes from the increase in NFT coinage. The number of active addresses is also fairly stable if we ignore the spikes.


Source: Messari

A positive development in the first quarter was an increase in Avalanche’s revenue. Specifically, the network’s revenue using AVAX has steadily grown more than 10% sequentially.

The increase in revenue was primarily due to an 18.2% increase in transaction fees due to the turbulent period for the network in the last few weeks of the previous quarter.

Blockchain performance in the DeFi space was also not the best in Q1 due to declining network value. As of AVAX, Avalanche’s TVL is down more than 34%. TVL, however, rose 4% in dollar terms. According to the Messari report, this indicates an increase in asset prices in dollar terms, rather than an inflow of new capital.

Source: Messari

The NFT ecosystem is affected

There were a lot of interesting developments in the first quarter that looked to be good for Avalanche’s NFT space. For example, OpenSea announced support for Avalanche, and Joepeg’s NFT marketplace has raised $5 million to invest in its operations.

While these updates were positive, things didn’t reflect reality, as secondary sales in Avalanche’s NFT space fell 31.6% quarter-over-quarter. Additionally, the number of unique NFT buyers also fell by 9.8% in the first quarter.

Source: Messari

Q2 brings a lot of good news

The volume of staking services increased significantly in the second quarter, and Staking Rewards data shows that the number of AVAX stakers has increased by more than 103.768% in the past 30 days. At press time, there are over 82,000 staking participants.

Source: Staking Rewards

As in the first quarter, Avalanche’s active addresses have remained stable so far in the second quarter, except for a drop on April 27. According to Artemin, AVAX’s daily transaction volume also increased in the last month, suggesting an increase in usage.

Source: Artemis

Development activity at AVAX has increased significantly since the start of the second quarter. This is quite optimistic, as it reflects the efforts of developers to improve the network. Its social media attention is also relatively high, which shows the popularity of blockchain in the encryption market.

Demand for AVAX in the derivatives market has also remained steady, as evidenced by Binance’s green funding rates.

Source: Santiment

Not to mention, the bear market has affected AVAX’s performance in terms of price, which fell sharply in Q2. However, at the time of writing, things are starting to change and the price of AVAX has increased slightly over the past 24 hours. The token is trading at $16.72, with a market capitalization of more than $5 billion, according to CoinMarketCap.

  • Avalanche (AVAX) Forms Bullish Pattern, Will Recovery Follow?
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According to AMBCrypto

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