Avalanche, one of the fastest blockchains in terms of processing speeds and time-to-finality stats, has seen a massive influx of users in the past seven days. A combination of several factors pushed this spike in activity comes from, including the recent AVAX price hike, as well as the start of the Avalanche Rush liquidity mining incentive program.
According to DappRader data, all of the top 12 dapps on Avalanche have seen an increase in unique active wallets (UAW) in the past week. What’s impressive is that out of the top 12, the most insignificant increase in UAW is an impressive 36% for Penguin Finance. This means that dapps on this blockchain are building up their audiences rapidly.
Pangolin Exchange is still dominating the DeFi sector on Avalanche. With more than 24,730 unique wallets connected in the past seven days, Pangolin saw a 69% increase in UAW. Volume on the platform also skyrocketed, reaching upwards of $295 million.
Interestingly, several NFT collections are also making the cut, with significant increases in active traders. Avalanche Punks saw the biggest increase in traders – 5018%! The collection is a remake of the much-celebrated CryptoPunks collection. However, it launched on the Avalanche blockchain. Released in March this year, this Punks variation sees revived interest on secondary markets as the primary minting phase has already ended.
CryptoSeals, the other notable mention in terms of NFT collectibles, also saw a steep increase in UAW. Boosting the number of active traders by more than 655% compared to the week before, CryptoSeals rides the wave of attention generative art has seen recently.
What pushed activity on Avalanche?
The Avalanche blockchain has enjoyed a wave of new users and increased attention in the past couple of weeks. There is a multitude of factors behind this spike, starting with a general rise in interest towards DeFi and NFTs. Most importantly, the native token AVAX has seen a tremendous price hike while the Avalanche team prepared for launching their Rush liquidity mining initiative.
While specific dapps are undertaking marketing campaigns of their own, the huge push Avalanche has made in terms of social media engagement in the past couple of months is also repaying. Currently, the official Avalanche Twitter account boasts more than 230,000 followers.
AVAX price hike
In August 2021, AVAX saw one of the steadiest uphill climbs in terms of valuation across the whole market. With a starting price of around $13 on August 1st, the token has brought massive gains for holders over the course of thirty days. At the time of writing, one AVAX token is worth $45.79, according to CoinGecko data.
This steep rise of more than 200% in just a couple of weeks has drawn waves of attention. Predominantly to the DeFi side of the Avalanche blockchain. More than half of the top-performing dapps on the blockchain fall into the DeFi category. Staking, swapping, and participating in liquidity pools have become a primary use case for the blockchain since the recent AVAX price hike.
The significant boost in user base numbers for Avalanche is also partly due to the recently launched Avalanche Rush. This is a long-term liquidity mining incentive program worth $180 million in AVAX tokens. Through Avalanche Rush, the blockchain’s creators are looking to encourage DeFi developers to move their dapps to the ecosystem.
The program’s first phase has seen close to $20 million AVAX tokens allocated for Aave-based dapps. Additionally, more than $7 million AVAX tokens will be distributed among Curve-based dapps as part of the initial stage of Rush. The liquidity will be provided in portions over a 3 month period.
Importantly, the whole Rush program would not have been possible without a revamped version of the Avalanche bridge service. The bridge allows users to swap between Ethereum-based ERC-20 tokens and Avalanche-based tokens, specifically AVAX.
Considering the serious amount of improvements and incentive programs Avalanche has initiated in the past month, it is no surprise there’s a surge of activity on the blockchain. DappRadar will continue monitoring Avalanche’s development. Especially as the Rush program continues and more people turn to DeFi solutions on the chain. If you’re interested in finding out more about Avalanche check out the links below.