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Avalanche's Q3 Performance Shows Sharp Decline in Revenue and Transaction Volume

Avalanche's Q3 report reveals significant challenges, with a 94.1% drop in total revenue and a 3.3% increase in network value. The network's transaction volume and fees have also declined sharply.
Published on 2022-10-11

Avalanche's Q3 Performance Highlights

Avalanche's Q3 report has revealed a mixed bag of performance metrics, with several key indicators showing significant declines. The network's total revenue dropped by a staggering 94.1%, while its network value increased by only 3.3%. This stark contrast underscores the challenges the network has faced during this period.

Transaction Volume and Fees Decline

The network's daily transaction volume and transaction fees have also seen a notable decline. Transaction volume is down by approximately 65.5%, while fees have dropped by 76.2%. These declines come despite recent integrations with platforms like Core, THORChain, and Boba Network, which were expected to boost activity.

DeFi and NFT Performance

Avalanche's DeFi ecosystem, particularly its Avalanche Rush incentive program, has struggled. The total value locked (TVL) in DeFi platforms decreased by 27% in both USD and AVAX terms quarter-over-quarter. Additionally, the network's NFT market has experienced a significant downturn, with NFT sales volume dropping by 88% and unique buyers decreasing by 34%. However, unique sellers have seen a 25% increase.

AVAX Token Performance

The network's native token, AVAX, has also faced headwinds. Currently trading at $15.93, AVAX has experienced a 5.85% price drop over the past 24 hours. Despite this, its 24-hour trading volume has surged by over 100% to $209 million. AVAX remains the 17th largest cryptocurrency by market capitalization, sitting just behind Uniswap (UNI) and ahead of Wrapped Bitcoin (WBTC).

Conclusion

Avalanche's Q3 performance paints a picture of a network facing significant challenges, with declining revenue, transaction volume, and DeFi activity. However, the increase in unique NFT sellers and the surge in AVAX trading volume offer a glimmer of hope. Investors and stakeholders will be closely monitoring the network's progress in the coming quarters to see if it can reverse these trends and regain momentum in the competitive crypto market.

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