Avalanche Transactions During USDC's Temporary De-Peg Depegment in Q1 2023: Nansen

Avalanche Transactions During USDC's Temporary De-Peg Depegment in Q1 2023: Nansen

In Avalanche's fourth quarter report, shared withCryptoPotatothe data and analytics platform Nansen, reported a highly volatile daily transaction count on the Avalanche C-Chain.

The Avalanche C-Chain is essentially short for Contract Chain – the standard smart contract blockchain on Avalanche. It allows the creation of any Ethereum-compatible smart contracts and runs complementary to the X-Chain, which is used to send and receive funds in the form of AVAX tokens.

Avalanche On-Chain Q1 2023

The number of transactions on the network constantly fluctuated between ~90,000 and 200,000. However, a strong rise above this area to 290,000 was recorded on March 11, driven by Trader Joe, USDC and two unmarked addresses. The latter were found to be two bots that recorded high activity, suggesting that several players took advantage of the market panic caused by the USDC de-peg that day.

The number of unique addresses transacting on the network has also increased significantly. In particular, on March 10th and 11th, daily active addresses saw a spike, recording over 120,000 each day. Average paid gas payments, on the other hand, followed a similar pattern to transactions, with the exception of January 1, where they exceeded 40,000, although the number of transactions did not increase noticeably.

In the first quarter, the average daily gas spent on Avalanche C-Chain was significantly lower compared to Ethereum. For comparison, the lowest daily gas paid on Ethereum was $2.43 on January 8th. This is in stark contrast to the highest gas paid on Avalanche, which was $16 on March 11th. Avalanche C-Chain users only paid between $0.07 and $0.32 for gas.

Nansen's data suggested that despite the sudden increase in transactions on both chains on March 11, the average gas generated for Avalanche C-Chain is still 76 times lower than Ethereum.

Mega Septiandara, Research Analyst at Nansen, said:

"Even as the Web3 ecosystem recovers from another event that eroded industry confidence, Avalanche marked a successful start to the year with significant gains combined with multiple product releases and partnerships aimed at driving adoption and restoring industry confidence. With a strong focus on driving innovation, Avalanche is undoubtedly poised for significant growth as we enter the second quarter."

AVAX price history

In addition to significant growth in total transactions and active addresses, Avalanche’s native token – AVAX – recorded impressive gains.

After starting the year at $10.9, AVAX has gained 60% year-to-date and is currently trading at $17.55.

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