The second quarter proved to be one of the worst economic blows in cryptocurrency history. According to the company, Avalanche was the fastest smart contract platform in the blockchain industry as a whole and didn’t crash as much as its corresponding platform.
In other words, this bear market couldn’t destroy the company in the second quarter. Avalanche continued to expand even during the blockchain crisis. Even after the recent collapse of the industry, the decentralization of the Avalanche network remained strong.
The detailed analysis is as follows: AvalancheQ2Report2022.
Overview of the Avalanche Network
Avalanche’s network usage has declined compared to the first quarter. To be precise, market capitalization has dropped significantly to 81.7%. Nevertheless, it does not significantly affect revenue generation and network usage. The average daily transaction is reduced by 37.8%. Total income is also affected. Reduced by 25%. The price-to-sales ratio, or P / S, has skyrocketed. This ratio was 91 times in the first quarter, but increased 379 times in the second quarter.
Avalanche total lock value
The total lock value of a Defi (Decentralized Finance) system is defined as the number of user funds stored (locked) in a ledger or DeFi protocol. This TVL declined this quarter while the amount of DeFi-locked AVAX surged. The quarter started at $ 115 million. It ended up at $ 152 million. This statement indicates that a TVL (Total Value Locked) crash does not necessarily indicate a decrease in utilization. In this case, the price decline reflects the AVAX market price decline.
Avalanche circulation market capitalization
In terms of CMC (circular market capitalization), it was a tough quarter for an avalanche. This statement concerns the fact that Avalanche and Fantom witnessed the greatest decline against their counterparts. By comparison, this quarter has been stable on blockchain networks such as Ethereum, Polygon and BNB Chain. During the second quarter, these EVM chains gradually regained their market advantage.
Avalanche Daily Transactions vs. Top Chains
Avalanche brought fierce competition to Ethereum in the early first and second quarters. Since May 22, AVAX has witnessed a significant reduction in daily transactions. By the end of the second quarter, AVAX reached only 50% of ETH. One of the main reasons for this decline can be explained by launching the Swimmer network subnet. This happened in May at about the same time that the number of daily transactions on the C chain began to decline. Ethereum remains stable in the market. Currently, ETH statistics are 1.17 million transactions / day.
The second quarter was one of the most difficult quarters for an avalanche. Macro forces such as bear markets and gravity tend to reduce network and user activity. Anyway, the avalanche wants to drive market growth soon. This is possible through an incentive program launched by the community.