The rising cost of using the Ethereum blockchain due to network congestion has frustrated many crypto enthusiasts, especially those looking to explore the DeFi and NFT spheres. As a result, many competing Layer 1 blockchains have seized this opportunity to capture Ethereum’s market share with varying degrees of success.
Outstanding among them is the Avalanche Network, which has grown exponentially in the Layer 1 market over the past few months. At the same time, the number of daily transactions and active wallets on the protocol increased the most only in the last 60 days.
In terms of Total Value Locked (TVL), the network ranks second after Terra at over $ 12 billion.
– Gojo (@Gojo_Crypto) December 25, 2021
Avalanche in the lead
One of the factors driving Avalanche’s growth is likely its high processing speed, as the network claims to run over 4,500 transactions per second while Ethereum can only support around 13 transactions per second. Its total trading accounts even surpassed the 50 million mark recently, after rising in late August.
Just in time for Christmas …
Avalanche (C-Chain) has just exceeded 50 million total transactions.
On to the next 50 million! pic.twitter.com/wtBwyH60jK
– Jay Kurahashi-Sofue (@ jayks17) December 25, 2021
Early last week, Bank of America found in a research report that Avalanche’s network scalability and security make it a viable Ethereum alternative.
Additionally, Avalanche’s Avalanche developers also focus on ecosystem-centric development to drive growth. The smart contract platform recently announced over $ 600 million in initiatives that have raised $ 230 million to support the liquidity of the network’s growing DeFi ecosystem.
Follow Data by Delphi Digital, Avalanche’s C-chain development activities also grew significantly this year, with over 400 developers and 70,000 individual contracts deployed. It should be noted that much of that growth was accelerated by the end of July thanks to the integration of Chainlink’s price feed into the Avalanche mainnet.
Source: Delphi Digital
The apparent growth rate of the network has also led many crypto companies to partner and provide support. The native AVAX token was only released last year, but was recently listed under by the top Kraken exchange notification 22 and is also supported by crypto asset management firm BitGo, which is showing interest from both retail and institutional investors.
Terra is still leading the game
The partnership with the “Big Four” auditing company Deloitte to “build more efficient platforms for disaster relief using the Avalanche blockchain” even pushed the AVAX price to an all-time high in November.
Overall, the asset’s value rose over 3700% in the past year and even briefly slumped into the top 10 cryptocurrencies last month. Its main competitor at the time was Terra, which has also had similar growth numbers lately, outperforming both Avalanche TVL and AVAX.
LUNA price rose a record 18,459% last year, which resulted in Terra’s DeFi volume recently surpassing the $ 21 billion mark after increasing more than 30% in the month. This makes it the largest DeFi ecosystem after Ethereum, while Avalanche remains in 5th place.
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