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Avalanche’s Q2 2023: Achievements and Future Prospects

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In Q2 2023, Avalanche faced both challenges and opportunities in the rapidly evolving cryptocurrency and blockchain landscape. In a report on how Avalanche fared in Q2 20223, one significant challenge came from the regulatory climate, which impacted AVAX’s financial performance. 

The Securities and Exchange Commission (SEC) alleged that several exchanges unlawfully engaged in unregistered offers and sales of crypto asset securities, causing downward pressure on AVAX’s price as AVAX was mentioned in the list compiled by the SEC.

Despite this, the platform’s revenue experienced significant growth, thanks to increased activity on LayerZero and the XEN Crypto token, known for clogging networks. 

This positive revenue growth showcased the platform’s fundamental network utility, indicating that demand for AVAX was more driven by its value as a utility rather than mere speculation.

DeFi TVL and NFTs went down

According to the report on the performance of Avalanche, the DeFi sector, one of the pillars of the Avalanche ecosystem, experienced fluctuations in Q2. Total Value Locked (TVL) denominated in USD declined, but TVL denominated in AVAX increased, reflecting new capital inflows. 

While some DeFi protocols, like Benqi, saw a decline in TVL, the ecosystem continued to expand with the launch of various projects like Arrow Markets, Cables Finance, Circle, and more. Aave remained a significant part of Avalanche’s DeFi TVL, showcasing its importance in the ecosystem.

The NFT sector faced challenges, with a decline in secondary sales volume and unique buyers. However, the Avalanche community focused on strengthening the sector through initiatives like Avaissance, which supported artists and curated NFTs. 

Marketplaces like Superchief Gallery NFT and Zeroone partnered with Avalanche, paving the way for more opportunities in the NFT space.

DeFi Kingdom dominates

Furthermore, Avalanche’s gaming sector was dominated by DeFi Kingdoms, which generated the majority of transaction activity, while the platform aimed to attract more gaming activity from other applications. 

Efforts included introducing Avalanche Arcad3, fostering partnerships with GREE, Loco, and TSM, and launching several gaming subnets like GUNZ, Battle for Giostone, Draftables, Defimons, and NEOBRED. 

The platform also made strides in enterprise adoption and other use cases. Ava Labs launched Avalanche Evergreen Subnets in Q2, offering institutional blockchain deployments with public blockchain advantages. 

The first deployment, the Spruce subnet, allowed institutions like T. Rowe Price and Wellington Management to explore blockchain applications. 

Institutional expansion with Alibaba and engaging more developers

Collaborating with institutional clients, Avalanche joined hands with Alibaba to offer hosting services for validator nodes and launched Cloudverse for businesses to deploy metaverses rapidly. 

Also, it was noted that SK, one of South Korea’s largest conglomerates, launched its dedicated Avalanche Subnet, UPTN, bringing Avalanche Digital Collectibles and Web3 wallets to its millions of users.

Avalanche continued its focus on developer engagement and network improvement. The platform introduced various tools and integrations, like AvaCloud for simplified blockchain deployment, the Move Virtual Machine for enhanced functionalities, and Chainlink Functions Integration for connecting smart contracts to Web2 APIs. 

These efforts aim to encourage more developers to contribute to the ecosystem.

Stability in staking

Staking and decentralization remained stable overall, with a significant increase in delegators and delegator stakes, indicating growing interest from participants. 

Despite a rise in the average number of validators going offline, the percentage of responsive stakes and validators remained high enough to sustain block production.

Avalanche’s strategic elements during Q2 focused on technical developments, user access and experience, and community building. The Cortina network upgrade introduced optimizations, and Core served as a command center for improved user access and experience. 

The community is actively engaged through educational events, developer programs, and partnerships to drive adoption.

The future

For Avalanche, beyond Q2 of 2023, it is about onboarding more subnets, expanding the validator set, and attracting Web2 companies with its Evergreen Subnets. The platform will explore custom VM solutions to encourage further development and expansion. 

With its roadmap in place and optimizations already implemented, Avalanche aims to remain competitive and continue its growth trajectory throughout the year.

Read also; Crypto Assets Receive Property Recognition in Singapore’s Legal Milestone

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