The Avalanche blockchain has seen a significant increase in activity, attributed to rising trading volumes and speculation on memecoins.
Analysis of Avalanche Transaction Growth
Last week, Avalanche recorded a 66% increase in transactions, reaching 11.9 million transactions across over 181,000 active addresses. This surge indicates growing investor interest in the blockchain. However, researcher Nicolai Sondergaard noted that it's difficult to tie this growth directly to the U.S. government's adoption of Avalanche for its GDP data.
Factors Contributing to the Surge
The rise in Avalanche's activity came after the U.S. Department of Commerce included it among nine other blockchains for publishing real GDP data. Changes in the legislative and institutional environment may have contributed to the increased activity, but they are not the sole reason.
Activity on Decentralized Exchanges
Decentralized finance (DeFi) and memecoin speculation were the primary drivers of activity. 60% of the activity came from DeFi protocols, including Trader Joe and Aave, 25% from trading bots and MEV, and only 10% from whale speculation and memecoin discussions. The remaining activity was associated with gaming and non-fungible tokens.
The increase in activity paves the way for further integration of Avalanche into the decentralized finance ecosystem and may signal improvements for players on the blockchain.
