crypto strategy

Avalanche Reaches New High in ‘Subnet’ Strategy Boost – The Defiant

DFK Chain Subnet Leads to 51% Increase in Transactions Processed in September

Avalanche is on the rise.

Even as crypto grapples with existential questions in the wake of the FTX disaster, trading volumes on Avalanche, a layer 1 networkreached new heights in the third quarter thanks to the growth of its DFK Chain subnet.

According to data provided to The Defiant by Nansen, Avalanche processed 68 million transactions in September, a 51% jump from August.

Network upgrades

“Despite the complexities brought about by the current bear market, Avalanche’s transactions this quarter continued to grow in volume, supported by a number of significant network upgrades and additions to its ecosystem,” said Mega Septiandara. , research analyst at Nansen.

Monthly trading volume for Avalanche. Source: Nansen

Avalanche is a smart contract protocol that has positioned its layer-1 C chain as a low-cost alternative to Ethereum, which alarmed users in 2021 with a surge gas costs. Avalanche offers a multi-chain framework consisting of application-specific “subnets” built on top of its main chain.

Most of Avalanche’s value resides in its C-chain, which hosts a total locked value of $850 million according to DeFi Llama. However, Channel C’s TVL has fallen 93% from a peak of $12 billion last November.

But Ava Labs now appears to be redirecting its efforts to cultivating a multi-chain ecosystem of specialized subnets.

Nansen reports that the subnets generated significant transaction volume on Avalanche during the third quarter. The main subnet, DFK, processed 1.1 million transactions per day. In contrast, between 120,000 and 240,000 transactions were executed daily on Chain C.

Ecosystem

The DFK chain is an Ethereum Virtual Machine compatible subnet that hosts DeFi Realms, a gamified and decentralized DeFi exchange platform. The subnet was built by Ava Labs, the team behind Avalanche. Ava Labs hopes the DFK Channel will become a hub for GameFi projects.

The larger avalanche ecosystem also built up amid the bear trend.

TraderJoe, Avalanche’s top decentralized exchange, rolled out its v2 iteration in August. Joe v2 introduces concentrated liquidity features popularized by Uniswap v3. JoePegs, an NFT marketplace launched by TraderJoe in May, became the network’s first NFT platform with daily volume peaking at over $117,000 in July.

Native Bridge

In September, Boba Network also became the first layer 2 chain to throw at the top of Avalanche. Boba offers a native bridge for NFTs and off-chain APIs.

Avalanche also rolled out its Banff upgrade on September 29, paving the way for “elastic subnets” – subnets that give developers greater customization. The new features are currently being explored on the Fuji testnet, with Ava Labs preparing for a future mainnet launch.

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