Welcome back to the Avalanche Weekly Overview. A one-stop-shop for the AVAX community to get up to speed on the Avalanche blockchain network’s latest updates, metrics, releases, insights, ecosystem developments and more. All in one place.
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These metrics are based on a 7-day time frame, unless noted otherwise.
🔺What we’re watching: It’s commonly known that builders and developers want more customizability and interoperability to scale. And teams may look to Avalanche to launch their own layer-1 chain, formerly known as subnets, following the network’s massive Avalanche9000 upgrade in December.
If costs can decrease by 100x, while increasing profitability, Avalanche L1s would be an attractive solution, said GoGoLabs Founder Steven Gates during Avalanche Quarterly Webinar with Token Relations.
🔺Why it matters: The Avalanche infrastructure aims to become the go-to architecture for web3-native users and institutions alike to launch their own L1. Teams could benefit from having their own network because it pertains to their specific needs, while also having access to the technical backbone to optimize operations.
“ All you have to do is show up with your tokens, hardware gets spun up and now you’re actively validating and securing a new L1,” said Gates, whose company aims to help builders create their own L1s.
“[GoGoPool] just dropped the cost of launching an L1 by about a 100x because decentralization was by far the biggest economic and security concern,” he added.
For context, Avalanche L1s can define their own rules and token economics, meaning developers can integrate different business models. They also can still benefit from the security and interoperability of the broader main network. This level of control can be valuable for organizations or communities that need a blockchain tailored to their specific governance.
The Avalanche architecture promotes customizability, maintains fast transaction speeds and ability to handle a high user base. So the ecosystem’s main goal is to provide the tools needed for projects to succeed.
“If builders do want to come to our ecosystem and build, we’re very supportive of providing the tools in order to succeed because we recognize the problem with Ethereum and bad UX with 10 million rollups,” said Ava Labs Senior Ecosystem Growth Associate for DeFi Matt Schmenk. “I think that’s something that we want to get ahead of and solve the issue before it becomes a problem.”
🔺The bigger picture: Since many protocols have their own niche, “ certain applications really need a lot of control over their costs and throughput and execution,” said Avant Founder Rhett Shipp. As a result, Avalanche’s technical architecture could appeal to an array of users.
“ People are realizing that Avalanche has the best tech stack for building one’s own sovereign L1,” said Schmenk. “ [Avalanche] reached a point where we have the needed infrastructure to really hit critical mass.”
Source: Token Terminal (as of March 10)
L1 Stats
Active L1s: 49
Total L1 validators: 1,556
Total active blockchains in the Avalanche network: 52
Total staked across L1s: 479,379 AVAX
Distribution of L1s by category. Source: Snowpeer
Listen to Ava Labs execs John Nahas and John Wu speak to Anthony Scaramucci about the network’s potential to grow the financial sector
TradeSta announced its leverage trading platform for crypto tokens and RWAs is available on the Avalanche network
Check out Coqnet’s scanner page to view network metrics like daily active addresses, gas usage and more
Here’s Avalanche-based articles that made headlines this week.
Balancer V3 expands to Avalanche following governance vote (The Block)
Avalanche Shooter ‘Off the Grid’ Has a Thriving Black Market Ahead of OnChain Trading (Decrypt)
Check out the Avalanche blog for more updates.
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This information is for entertainment purposes only. It should not be considered financial advice, nor should it be used to make investment decisions. Cryptocurrencies are high risk and you should consult a financial professional before making any financial decisions. Make sure you do your own research.