According to people familiar with the discussion, Ava Labs Inc., the lead developer of the Avalanche blockchain, is raising new funding. The news comes after a strong start to the avalanche by 2022, when promising data were reported in the first quarter.
Let’s talk the numbers!
Messari has created a report titled “State of Avalanche Q12022”. According to the report, the first quarter “consisted of continued growth and network usage, financial performance, and network infrastructure stabilization.”
Avalanche has grown moderately compared to the previous quarter. However, there are significant growth opportunities as the average daily transaction almost doubles (+ 82.8%) across the quarter. Total revenue increased by 72.7%.
Network usage is also on the rise, and Avalanche is gradually catching up with the huge market for Ethereum blockchain.
AVAX resumed where it was suspended in the previous quarter. The average number of transactions per day increased from 473,000 in the fourth quarter of 2021 to 865,000 in the first quarter of 2022.
Currently, it has reached about three-quarters of Ethereum’s 1.17 million transactions. The avalanche also experienced an increase in daily earnings. While other EVM chains have declined, AVAX has also been able to approach the BNB chain and Ethereum.
Many major events took place this quarter, reflecting AVAX’s market capitalization. Notably, in January, we launched the Subnet-Ethereum virtual machine, which allows users to quickly create their own EVM-compatible blockchain.
Another surge in market capitalization was observed after Terra’s largest anchor protocol proposed a UST borrowing strategy. The idea was to include AVAX as the latest collateral asset to create a new range of options for the Avalanche blockchain.
According to the report, the rise in March was due to the launch of “Crabada and DeFi Kingdoms subnets where Crabada runs the testnet and DeFi Kingdoms is on the mainnet.”
The report concludes with the following statement:
“The avalanche has an interesting opportunity to surpass Ethereum in the next quarter.”
But ETH can escape soon
Ethereum will soon launch “The Merge,” which has already created euphoria for the entire community. Blockchain is leading the NFT market, where trading volumes are skyrocketing.
Ethereum is currently based in the world of gaming, NFT, music, entertainment, and DeFi. Considering all the technical factors, in the current scenario, the side of the avalanche beyond Ethereum looks dark.