VanEck analysts recently published a report that discloses Avalanche (AVAX) is going through a significant decline in activity and user base. Compared to August, Avalanche registered a 34% decline in the number of daily active users, and fees dropped 45%. On the other hand, Solana's and Polygon's weekly active developers have been respectively 165 and 125. In an attempt to counter these adversities, Avalanche recently unveiled its Hyper SDK, offering the potential for up to 143 thousand TPS. This remarkable figure surpasses both Solana's 50 thousand TPS and Ethereum's 200-300 TPS. According to the report, the AVAX coin supports the multi-blockchain network established by Avalanche, and its software development kit (SDK) seeks to bring forth fresh ideas, users and fees for the entire network.

At the peak of success, C-Chain, Avalanche's self-developed Ethereum Virtual Machine-based blockchain, had over $10 billion of total value locked (TVL) stored in smart contracts. In addition, fees generated were nearly $1 million per day with more than a hundred thousand of daily active users. In contrast, as of September 2023, only $500 million in TVL remain, and daily fees now reach $11 thousand; the number of daily active users dwindled to 34 thousand.

VanEck analysts trust in Avalanche's technical potential but are not optimistic because of the public's capital relocation from crypt-assets and Avalanche's feeble product diversification. Therefore, they presume it is complicated for Avalanche to regain the users it needs to revivify its chains, without a competent marketing policy.

In conclusion, the decline of Avalanche's activity and user base looks inevitable, but the promising Hyper SDK also suggests a potential for recovery. Nonetheless, since the market is being increasingly selective when it comes to blockchain platforms, the success of Avalanche will depend on its ability to convince companies to join the network.



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