[Investment firm with $77 billion under management weighs in on Avalanche (AVAX)]
Avalanche (AVAX) has seen a significant decrease in users and activity, according to a new report from VanEck.
The report pointed out that in September, Avalanche’s daily active users fell by 34% compared with August, and its transaction fees fell by 45%, becoming the second largest decline among the smart contract platforms tracked by VanEck. There are only 28 active developers per week, which is much lower than Solana’s 165 and Polygon’s 125, representing a year-on-year decline of 70%.
Nonetheless, Avalanche recently updated its “Hyper SDK” so that it can support 143,000 transactions per second, far exceeding Solana’s 50,000 TPS and Ethereum’s estimated 300 TPS. Avalanche is committed to creating an AVAX-driven multi-chain network, and Ava Labs has developed the software to run Avalanche, hoping to earn consulting fees by helping others develop the Avalanche blockchain.
However, in September 2023, the total locked value of C-Chain was only US$500 million, the daily fee was US$11,000, and the number of daily active users was 34,000, a significant drop. This is partly down to the bankruptcy of its main backer Three Arrows Capital and a lack of product diversification.
VanEck believes that although Avalanche's technology has great potential, there are doubts about whether it can effectively attract enterprise customers to revitalize its blockchain. VanEck is conservative about AVAX's prospects as Avalanche's developer community shrinks rapidly and venture capital investment becomes more cautious.
