Avalanche’s TVL puts up a challenge as AVAX puts its best foot forward

• Avalanche’s TVL declines despite success of dApps and DEX’s on the protocol.
• AVAX’s prices continue to surge along with its volume, however volatility declines.

While the cryptocurrency market experienced an optimistic phase, and several protocols showed progress on the DeFi front, Avalanche [AVAX] didn’t reflect the same trend. Although Avalanche‘s Total Value Locked (TVL) increased, it didn’t manage to match the value it had reached in November 2022.

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According to DefiLlama’s data, the overall TVL for Avalanche was around $862.72 million. However, AVAX’s TVL can expect some recovery thanks to the performance of dApps and DEX’s on the Avalanche network.

Source: Defi Llama

Not your average “Joe”

An example of this would be Trader Joe, which is one of the most well-known DEXs on the Avalanche network, and has been observed to experience considerable growth.

Messari’s data indicated that Trader Joe was among the DeFi market’s fastest-growing DEXs over the last six months. The reason for this substantial growth in Trader Joe’s popularity could be attributed to its concentrated liquidity model, Liquidity Book.

While @Uniswap V3 popularized the concept of concentrated liquidity, @traderjoe_xyz has been the fastest-growing DEX in the last 180 days following the launch of its own concentrated liquidity model, Liquidity Book (LB). pic.twitter.com/68Krszuxof

— Messari (@MessariCrypto) April 12, 2023

Similarly, DeFi protocols like Benqi also saw some progress, as indicated by DappRadar’s data. The number of unique active wallets that were being used on Benqi increased, along with an increase in both volume and the total number of transactions performed on the network.

Source: DappRadar

On the other hand, Avalanche also experienced a significant increase in activity, as stated by Artemis’ data, which showed a substantial rise in the number of active addresses on the network. This surge can be attributed to stablecoin contracts and Avalanche’s wrapped Bitcoin (BTC.b).

Source: Artemis

Avalanche has also been seeing increased interest from the TradFi space. According to Avalanche’s recent tweet, institutional partners such as Wisdom Tree Funds and Wellington management have started to use the Avalanche network to test their public blockchain applications.

Realistic or not, here’s AVAX market cap in BTC’s terms

The interest in Avalanche wasn’t limited to the protocol as the AVAX token witnessed positive developments as well. Santiment’s data suggested that AVAX’s prices surged materially over the last week. Coupled with that the volume of the token spiked from 218 million to 351 million during this period.

This price surge did not impact the token’s volatility as much, making it appealing to risk averse investors at press time.

Source: Santiment