Transaction volume surges on Avalanche as USDC loses lock in Q1 2023

In Avalanche’s Q4 report, data and analytics platform Nansen reported highly volatile daily transaction data on the Avalanche C-chain.

Avalanche C-Chain basically stands for Contract Chain – this is the default smart contract blockchain on Avalanche. It allows the creation of any Ethereum-compatible smart contract and runs outside of the X-Chain, which is used to send and receive funds in the form of AVAX tokens.

Avalanche on-chain data for Q1 2023

The number of transactions on the network continues to fluctuate between 90,000 and 200,000. However, March 11 saw the range spike to 290,000, driven by Trader Joe, USDC, and two unlabeled addresses. These two unknown addresses were found to be robots performing high-frequency operations, indicating that many players took advantage of the market panic caused by USDC losing its peg that day.

The number of unique addresses transacting on the network has also increased significantly. Specifically, on March 10 and 11, there was a spike in daily active addresses, recording more than 120,000 addresses per day. On the other hand, the average paid gas and transactions followed a similar pattern, except on January 1st, it surpassed 40,000 despite a slight increase in the number of transactions.

In Q1, the average daily gas fee paid by Avalanche C-Chain was significantly lower compared to Ethereum. On January 8, the minimum daily gas payment for Ethereum was $2.43. This is in stark contrast to the highest gas paid by Avalanche, which was $16 on March 11. The gas fee of Avalanche C-Chain is only $0.07 to $0.32.

Despite a surge in transaction volume on both chains on March 11, the average gas paid on Avalanche C-Chain is still 76 times lower than Ethereum, according to Nansen.

Nansen Research Analyst Mega Septiandara said:

“Even as the Web3 ecosystem recovers from another event that sapped industry confidence, Avalanche marks a successful start to the year with significant achievements and a combination of multiple product launches and partnerships to accelerate adoption and restore confidence in the field Trust. With a strong focus on driving innovation, Avalanche is sure to post significant growth heading into the second quarter.”

AVAX Price Trajectory

In addition to the significant growth in active transactions and the total number of addresses, Avalanche’s native token, AVAX, has also achieved impressive gains.

After starting the year at $10.9, AVAX is up nearly 60% year-to-date and is currently trading at $16.9.

Source: TradingView

  • Avalanche Introduces Cortina Upgrade – AVAX Growth Over 6%
  • AVAX Soars Over 4% as Avalanche Network Accelerates

board take

According to CryptoPotato

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