#AVAX
There are more and more chains, and it’s a bit overwhelming... They don’t seem all that valuable...
Avalanche was originally designed to address a challenge: blockchains need to be fast, while different applications need rules suited to their own needs. Trading apps, games, and institutional assets don’t all need to be squeezed onto the same track.
Its approach lets projects build independent L1s, with their own permissions, execution environments, and token rules. Projects that need to restrict who can participate can set access requirements, while regular developers can also build on the Ethereum-compatible C-Chain. Flexibility is an advantage, but independent chains also have to maintain their own security and operations. Launching doesn’t mean anyone will show up.
Here’s the key point: independent L1s can use their own gas tokens. More projects launching doesn’t mean every transaction will be paid for in AVAX. So using the “number of ecosystem projects” to directly infer demand for AVAX risks mistaking a successful recruitment drive for a record of actual revenue.
AVAX itself is used for mainnet fees and staking. Mainnet fees are burned, but staking rewards create new issuance. Focusing only on burns and ignoring new issuance is like looking only at expenses and not wages—the accounting is incomplete either way.
AVAX is currently around $8.58, up 1.78% over 24 hours. The DefiLlama page shows about $611 million in DeFi TVL on Avalanche, around $82.44 million in DEX volume over the past day, and about 37,200 active addresses. This indicates real on-chain activity, but address counts aren’t user counts, and these metrics don’t represent the combined performance of all independent L1s.
Over the next three to six months, what’s worth tracking is whether capital can stay, whether applications can keep charging fees, and how much of the new business actually translates into demand for AVAX.
If stablecoins, trading, and real fees all grow together, value capture will be on firmer ground. If the list of partnerships keeps getting longer while capital and fees stay flat, the narrative may be running ahead of the business.
The next assignment for AVAX is to prove that a useful blockchain tool can also become a token with sustained demand. That’s all...
#AVAX #Avalanche
There are more and more chains, and it’s a bit overwhelming... They don’t seem all that valuable...
Avalanche was originally designed to address a challenge: blockchains need to be fast, while different applications need rules suited to their own needs. Trading apps, games, and institutional assets don’t all need to be squeezed onto the same track.
Its approach lets projects build independent L1s, with their own permissions, execution environments, and token rules. Projects that need to restrict who can participate can set access requirements, while regular developers can also build on the Ethereum-compatible C-Chain. Flexibility is an advantage, but independent chains also have to maintain their own security and operations. Launching doesn’t mean anyone will show up.
Here’s the key point: independent L1s can use their own gas tokens. More projects launching doesn’t mean every transaction will be paid for in AVAX. So using the “number of ecosystem projects” to directly infer demand for AVAX risks mistaking a successful recruitment drive for a record of actual revenue.
AVAX itself is used for mainnet fees and staking. Mainnet fees are burned, but staking rewards create new issuance. Focusing only on burns and ignoring new issuance is like looking only at expenses and not wages—the accounting is incomplete either way.
AVAX is currently around $8.58, up 1.78% over 24 hours. The DefiLlama page shows about $611 million in DeFi TVL on Avalanche, around $82.44 million in DEX volume over the past day, and about 37,200 active addresses. This indicates real on-chain activity, but address counts aren’t user counts, and these metrics don’t represent the combined performance of all independent L1s.
Over the next three to six months, what’s worth tracking is whether capital can stay, whether applications can keep charging fees, and how much of the new business actually translates into demand for AVAX.
If stablecoins, trading, and real fees all grow together, value capture will be on firmer ground. If the list of partnerships keeps getting longer while capital and fees stay flat, the narrative may be running ahead of the business.
The next assignment for AVAX is to prove that a useful blockchain tool can also become a token with sustained demand. That’s all...
#AVAX #Avalanche
