The Avalanche blockchain’s native token AVAX has been on the rise lately, and that success brought lots of new users to the blockchain. Pangolin Exchange in particular is a dapp reaping the rewards of this boost of interest.
The AVAX token gained 162% in the last 7-days, taking it close to $50 from around $19. As a result, the entire DeFi Dapp ecosystem on Avalanche has received a welcome booster in both unique active wallets and volume with Pangolin Exchange leading the charge.
Amongst a crowd of relatively small numbers, the Pangolin Exchange is really starting to pull out ahead. In the last 7 days, the decentralized token swap and yield farming platform have seen a 251% increase in the number of unique active wallets interacting with its smart contracts. Now up to almost 15,000. In turn, these wallets generated over $268 million in volume for the platform through 102,350 transactions with an average value of $2,624 in the last 7-days.
As mentioned, the price of AVAX has been rapidly ascending these last few weeks as more and more hype around the applications of the blockchain started to spread through the industry. At the time of writing AVAX is priced at $49.02. Having risen 232% in the last 2 weeks from $14.82. The token price increase is relevant here as this appears to have stimulated a rush of token holders to dapps providing DeFi services that utilize and leverage the AVAX token.
The Pangolin Exchange steps out as the leading decentralized exchange on Avalanche with over $400 million in total value locked and its own native token PNG. Seen more clearly through the lens of the dapps internal data we see that Wrapped AVAX, Tether, Wrapped Ether and PNG are the four most used tokens on the platform in regards to 24-hour volume.
As mentioned, AVAX is the native token on the Avalanche platform. Many smart contracts on the Contract Chain (C-Chain), which is an instance of the Ethereum Virtual Machine, are designed to work with Ethereum’s ERC-20 tokens. Importantly, In order to use AVAX in such contracts, you must use wrapped AVAX (WAVAX), which is ERC-20 compatible. As seen above, this is occurring, with over $118 million in wrapped AVAX now in the Pangolin exchange. Looking at the top pairs on the exchange reveals more detail about what users are actually doing.
The top pairings are WETH-e/WAVAX and WAVAX/USDT-e. The third most popular pair by 24hr volume is PNG/WAVAX. Meaning users have entered the dapp, exchanged a portion of their AVAX to PNG, and then staked that at equal weightings in order to gain rewards. Other factors driving increased usage are the introduction of further yield opportunities such as staking DYP and AVAX to receive PNG rewards.
The Pangolin Exchange and DeFi on the Avalanche Blockchain are taking off right now. Moreover, Avalanche isn’t yet another centralized blockchain with no innovation. Avalanche is a blockchain platform that can scale the active validator set whilst also offering visa-level throughput.
In addition, it offers sub-second finality and unparalleled decentralization. Vitally, the platform is compatible with the Ethereum Virtual Machine and is designed to work with Ethereum’s ERC-20 tokens. Something that will be of great advantage when competing in the crowded world of DeFi.