Avalanche Feels Impact of Bear Market

Quick Take

• In this weekly series, we dive into some of the most interesting data and developments across the Layer 1 blockchain landscape, from DeFi and bridges to network activity and funding
• The Avalanche ecosystem quickly rose to prominence in 2021 amidst growing concerns over scalability of the Ethereum network
• Avalanche subnets represent the network’s long-term strategy for scaling and initially reduced congestion on the Avalanche C-Chain, but activity on the primary network has remained muted since mid-2022
• A recent update to the Avalanche network has relaxed the capital requirements to becoming a subnet validator and enabled basic communication between subnet VMs, taking a step toward greater scaling functionality for subnets in the future