The Avalanche (AVAX) ecosystem is gaining more and more attention in the world of blockchain and decentralized finance (DeFi). While not as well-known as other chains such as Ethereum and Binance Smart Chain, Avalanche’s unique consensus mechanism and interoperability with other chains make it an attractive option for both developers and users.
With a promising Total Value Locked (TVL) and strong engagement from users and developers, the Avalanche ecosystem is in the midst of significant growth and innovation.
Will AVAX be the next big thing?
according to According to DeFi researcher Wacy, the Avalanche ecosystem is on the verge of flowering, and there are several reasons behind its recent surge in popularity. While many are eyeing new layer 2 solutions, Wacy suggests that Avalanche’s potential shouldn’t be ignored.
One of the key measures of the chain’s success is Total Value Locked, where $AVAX’s TVL has decreased by only 50% despite the token price dropping over 80%. This indicates continued interest in this chain and serves as a positive indicator of its future potential.
![avalanche](https://www.newsbtc.com/wp-content/uploads/2023/05/Fw5zPJhaAAEa28Y-860x505.jpg)
In addition to TVL, other metrics such as daily active addresses and daily transactions are also showing good growth, indicating strong engagement from users. The number of contracts and number of deployers are also strong indicators of interest in the project, which also shows strong engagement from developers.
Additionally, Wacy notes that over the past seven days, he has seen an increase in Twitter followers, more mentions on Twitter, and a growing The Avalanche community. These basic metrics may be overlooked by some, but they provide valuable insight into the potential of the Avalanche ecosystem.
Avalanche emerges as a hidden gem for developers and users
According to Wacy, as the Avalanche ecosystem continues to gain traction in the world of blockchain and decentralized finance, several projects have emerged as major narratives that could see significant growth during this heyday. It says.
One such project is Trader Joe, currently the number one decentralized exchange (DEX) on Avalanche. By creating the most capital efficient DEX in DeFi, Trader Joe is shaping the future of decentralized finance. JOE Tokens allow users to earn a portion of the platform’s revenue and gain access to exclusive benefits and features.
With a current price of $0.35 and a market cap of $120 million, Trader Joe is listed on Binance, OKX and Huobi and is poised for significant growth in the coming months.
Another project that could see significant growth during the Avalanche ecosystem’s heyday is GMX. GMX is a decentralized exchange with low swap fees and zero price impact trading. GMX is best known for its Arbitrum support, but it also supports AVAX.
With a current price of $54 and a market capitalization of $475 million, GMX is listed on Binance, OKX, Huobi and KuCoin and rewards staking GMX with 30% of swap and leverage trading fees will be converted to ETH/AVAX and distributed. GMX token. Staking on Arbitrum earns ETH and staking on Avalanche earns AVAX.
Collectively, these projects represent the unique potential of the Avalanche ecosystem. Avalanche has attracted significant interest from both developers and users due to its unique consensus mechanism, interoperability with other chains, and promising metrics. As more projects like Trader Joe and GMX emerge, we can expect continued growth and innovation in the ecosystem with new use cases and applications for blockchain technology.
AVAX is currently experiencing significant declines in value on all timeframes. The current trading price is $14.09, up just 0.1% in the last 24 hours. However, over 7, 14, and 30 days, AVAX experienced declines of 5%, 6%, and 16%, respectively.
Featured image from Unsplash, chart from TradingView.com