Avalanche (AVAX), the blockchain platform known for its scalability and infrastructure, made significant progress in the fourth quarter (Q4) of 2023. According to a report by Messari, AVAX emerged as one of the best-performing tokens, leading the protocol to record notable gains in key metrics.
Record milestones for Avalanche
He report shows that AVAX saw a notable increase in its market capitalization, which increased by 344% quarter-over-quarter (QoQ) and 326% year-over-year (YoY), reaching $14.4 billion at the end of the year. This huge increase boosted AVAX's market cap ranking among all tokens from 20th to 9th, up 11 spots (currently 10th behind Cardano (ADA).
One of the factors driving Avalanche's significant revenue growth was increased enrollment, particularly Avascriptions (ACS-20 Sheets).
These on-chain call data transactions saw significant momentum, resulting in substantial revenue growth. From November to December, Avalanche witnessed an increase in revenue, with a 2,874% increase measured in dollars, from $1.9 million to $56.5 million.
The increase in revenue was accompanied by a significant increase in daily transactions, which increased 450% quarter-on-quarter to 1.5 million. The emergence of Avascriptions also fueled most of these transactions.
Avalanche's C-Chain saw a record 6.3 million transactions, of which nearly 6.1 million were signups. This marks the most transactions ever recorded in a single day for the Avalanche.
While C-Chain saw a 50% quarter-on-quarter decline in daily active addresses, this was mainly due to decreased activity on LayerZero, a bridge between different blockchains. However, the report highlights that Avalanche saw a significant increase in active validators, growing 20% โโquarter-over-quarter from 1,374 to 1,651 validators.
According to Messari, this growth in validators, coupled with an 11% quarter-over-quarter increase in AVAX holdings, indicates a promising long-term appetite for AVAX over the next year.
Avalanche's TVL increases 78%
avalanche Total Locked Value (TVL) denominated in USD saw a substantial increase of 78% quarter-on-quarter, reaching $1.03 billion at the end of Q4 2023. This positioned Avalanche as the seventh network by TVL, denominated in USD.
However, AVAX-denominated TVL decreased by 71% QoQ, mainly due to AVAX price appreciation driving the increase in USD-denominated TVL.
The report also sheds light on the performance of various protocols at Avalanche. AAVE, the largest TVL protocol, saw 60% quarter-on-quarter growth, while Benqi and trader joe demonstrated strong gains of 205% and 131% quarter-on-quarter, respectively. Together, these three protocols accounted for 79% of Avalanche's TVL, demonstrating its dominance in the ecosystem.
Smaller protocols such as Pangolin and GMX also showed impressive growth, while Balancer, with the help of Benqi's sAVAX liquidity pool, attracted significant TVL on Avalanche. Furthermore, the fourth quarter witnessed an increase in average daily DEX volumes, increasing by 245% quarter-on-quarter.
1-day chart analysis reveals that Avalanche's AVAX/USD token trading pair saw significant growth during the fourth quarter, breaking free from a prolonged period of sideways price action.
However, after a notable bullish trend That propelled the token to reach $50, its highest level in 20 months. On December 24, AVAX saw a sharp correction, falling to the $27 price level.
The cryptocurrency has rallied in response to the Bitcoin (BTC) rally and the prevailing bullish sentiment in the market. Over the past fourteen days, AVAX has witnessed a 13% price increase, currently reclaiming the $40 area.
Featured image from Shutterstock, chart from TradingView.com
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