November 8, 2023
Web3
5
mins
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0xScope

Avalanche: A 0xScope Overview

0xScope has recently launched support for Avalanche, a Layer-1 smart contract-based blockchain that emerged as a major crypto platform since its public launch in March 2020. What sets Avalanche apart from its competitors is its use of randomized voting systems for quickly confirming on-chain transactions, as well as the presence of sub-protocols for its consensus mechanism, making it possible for the blockchain to process thousands of transactions per second.

In this article, the 0xScope team provides an overview of key statistics and important trends related to the Avalanche ecosystem.

Avalanche TVL Data

As of November 3, Avalanche is the 8th largest blockchain by TVL, at $729.8M. In comparison to the recently added blockchains on Scopescan, Avalanche is ahead of Base (11th largest blockchain with a $318.4M TVL) but behind Arbitrum (4th, at $2.17B) and Optimism (7th, at $779.6M). Avalanche has 34 projects with more than $1M in TVL, compared to Arbitrum's 97, Optimism's 43, and Base's 31.

Avalanche's TVL reached its all-time high of $11.48B on December 2, 2021. At the time, the platform became the third-largest blockchain based on TVL, behind only Ethereum and BNB Smart Chain.

Source: DefiLlama. Legend: Avalanche is pink, Arbitrum is green, Optimism is blue, and Base is yellow.

Avalanche Project Data

Among the 248 Avalance projects tracked on Scopescan, the top project based on daily active addresses and entities is the Stargate multichain token bridge platform. Next on the list is Trader Joe, a decentralized exchange that is popular with the Avalanche community, given that the blockchain's $AVAX native token has the highest volume ($21.9M) among crypto assets being traded there. These are the only Avalanche projects with more than 1,000 daily active addresses and entities.

Another project worth mentioning is Stars Arena, which is emerging as Avalanche's SocialFi answer to Base's Friend.tech. Like Friend.tech, Stars Arena allows creators to sell "tickets" for access to their content in exchange $AVAX tokens.

Meanwhile, the top Avalanche project based on TVL is BENQI, a DeFi platform for staking $AVAX tokens. Given that the whole point of the project is to store crypto, it's unsurprising that its $215.4M TVL tops all other Avalanche projects.

Source: Scopescan

Gas Consumption: Trader Joe vs. Uniswap

Ethereum is a way bigger blockchain than Avalanche, but one area where Avalanche has an advantage over its bigger rival is the lower gas consumption by its projects. To illustrate this point, we compared Avalanche's gas consumption leader Trader Joe to Ethereum's top gas consumer Uniswap.

Source: Scopescan

On November 6, Trader Joe consumed 93.72 $AVAX, or around $1,200, while Uniswap consumed way more gas at 410.42 $ETH, or around $780,000. If we factor in the number of users, we see in the chart below that Trader Joe had even more active entities than Uniswap. Factoring in the trading volume on that day, Uniswap is 11x bigger than Trader Joe ($1.16B vs $96.67M), but this 11x difference still does not make up for the even bigger gas consumption discrepancy between the two DEXs. As a result, even after considering other comparative factors, it turns out that Trader Joe's lower gas consumption is a testament to certain efficiencies on the Avalanche network compared to its bigger rival.

Source: Scopescan

SocialFi: Stars Arena vs. Friend.tech

SocialFi, or decentralized social networking, is another area where Avalanche has an alternative project to pit against a more popular brand. In this case, it's Avalanche-based Stars Arena that's taking on Friend.tech from Base. Both apps have similar functions: users connect their Twitter accounts to the dapps, then buy or sell "tickets" to each other for content access. What differentiates Stars Arena is its public feed feature, allowing users to follow others without having to pay upfront.

Stars Arena started onboarding new users on September 20, and it took them about two weeks to register a record-high 9,983 active entities on October 6. However, on the same day, Stars Arena lost $3 million in a hack, prompting the social media app to briefly stop its operations to give way to a security audit. Since its reopening in mid-October, the app failed to reach past 4,000 active entities per day.

Source: Scopescan

Friend.tech launched a month earlier, alongside Base's public debut in August. It has experienced its share of highs and lows, and around the time of Stars Arena's launch, the app is relatively steady at around 10,000 active entities per day. During the days that followed Stars Arena's hack, Friend.tech saw a brief rise to above 20,000 daily active entities, then recorded its all-time high of 73,611 active entities on October 15. In recent days, Friend.tech's entity numbers have dwindled to below 3,000, but overall it is still ahead of its rivals like Star Arena,

Source: Scopescan

Conclusion

With 0xScope's launch of support for Avalanche, users can uncover more insights and trends on the activities on this blockchain. For this report, we used Scopescan tools such as Project Explorer, Wallet Explorer, Live Statistics, Whale Watch, and more. We encourage the Web3 community to unearth more findings about projects and activities on major blockchains by using 0xScope and Scopescan. You can also share your thoughts on this topic through our links below.

0xScope is adding support for more blockchains in the future. Stay tuned for updates.

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