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Overview of essay:

In this essay, the Avalanche network has been investigated through Flipside data. The major aim of this study to explore the provided data on Flipside and find interesting outcomes on Avalanche blockchain.

To reach the this goal, this essay has been divided into three sections as:

• Live Network analysis

• Sectoral analysis (Dex, DeFi, …)

• Track Stablecoins (USDC, USDT and DAI) on Avalanche

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The Outcomes of each sections has been summarized and interesting consequences have been highlighted, accordingly.

This dashboard is Live and Refresh on Daily basis.

What is Avalanche?

Avalanche, like several other projects, is a platform for smart contracts and decentralized applications, and was created with the aim of solving Ethereum's shortcomings. Avalanche's focus is on scalability, and by providing a new architecture and structure, it has tried to process a large number of transactions in an instant, while also providing an acceptable amount of decentralization.

In a way, Avalanche seeks to create conditions for global asset exchange that allows anyone to launch or trade any type of digital asset and control it in a decentralized manner using smart contracts and other advanced technologies. The Avalanche platform uses a new approach to consensus to achieve strong security guarantees while achieving fast finality and high throughput without compromising decentralization. Unlike other networks that uniformly impose terms and conditions of network participation on the system, Avalanche empowers individuals and institutions to easily create powerful, reliable, and secure applications and custom blockchain networks with complex rules, or in networks Available private or public work according to their use cases.

How does it work?

One of the differences between Avalanche and other decentralized networks is its consensus protocol. The consensus protocol optimized in Avalanche for smart contracts is called Snowman. Avalanche also uses DAG or Directed Circular Graph as a distributed ledger. The Avalanche family of protocols work through sequential (repeated) polling based on partial patterns. When a validator determines whether a transaction should be accepted or rejected, it asks a small random subset of validators whether they think the transaction should be accepted or rejected. If the queried validator thinks the transaction is invalid, has already rejected the transaction, or sees the transaction as inconsistent, it responds that it thinks the transaction should be rejected. Otherwise, it responds that it thinks the transaction should be accepted.

If a large fraction (alpha) of sample validators respond that they think the transaction should be accepted, the validator prefers to accept the transaction.

In the normal case where the transaction has no conflicts, the finalization happens very quickly. When there is a conflict, honest validators quickly gather around conflicting transactions and enter a positive feedback loop until they all say what they think of the transaction. This leads to accepting non-conflicting transactions and rejecting conflicting transactions.

Part1: Live Network analysis

Daily statistics:

• The number of newcomers has been decreased in June and July (Bear market) but from start of August increased again and that means users interacted more with Avalanche network.
• If look precisely, the price of AVAX as a native token of Avalanche affected the newcomers and application of Avalanche.
• The overall success rate of transactions on Avalanche is acceptable and about 90% of transactions are successful.
• The highest percentage of transactions that failed happened on June 13th due to the congestion on network and other reasons.
• The highest volume of transferred AVAX happened on June 13 with 21.3 million tokens but after that date increased accordingly.
• The Avalanche is well-known with its highest TPM and its maximum TPM occurred on July 27th with 2720 transactions per minute.
• The daily number of transactions and related to it generated fee was high on June 13th due to the highest application of network.
• The numbers shown above demonstrate the updated stats of Avalanche network and shown the parameters related to it.

Part 2: Sectoral analysis

Main sectors on Avalanche:

Based on the destinations of transactions, the interaction of Avalanche users with various program types (sectors) has been displayed in this part:

• The most used program type by Avalanche users is DEX by near 73% of usage.
• On June 28, the application of Layer2 has been increased on Avalanche and this shown that more users bridged their assets on Avalanche on that date.
• DeFi programs are the second most used program types by Avalanche users and their application was high on month June.
• The cumulative analysis has been used to reveal the grow rate of sectors on Avalanche. According to this graph, the DEXs and DeFi programs have been dominated the usage of sectors on Avalanche and their usage have been grown significantly over time.

DEXs:

As mentioned earlier, the most used program type on Avalanche is DEX. Now, lets dive deep on various programs in this field.

• It can be seen that the Trader Joe is the dominant DEX program on Avalanche. Next ranks belong to Curve Fi and Paraswap ,respectively.
• The usage of DEX programs has been increased over time and reached its highest level on June 13th.

DeFi programs:

The one of the crucial part of each network and specially Avalanche is the application of DeFi programs on it.

• The DeFi program with the most application on Avalanche is Aave protocol. After that Wonderland and Celer network takes the other spots.
• From the DeFi programs usage point of view it can be seen that the highest application of these kind programs happened on June 13th.

Layer2 (Bridges):

The main concentration of Avalanche network is on solving Ethereum's shortcomings. For this purpose the application of Layer2 (bridges) should be importantly analzed.

• From the Layer2 sector point of view, it can be seen that most of the time the highest usage belongs to Synapse. After that Multichain and Allbridge takes the other spots.
• The highest usage of this filed happened on June 28th as can be seen.

Part3: Track Stablecoins on Avalanche

Stablecoins:

Now, go further and track the stablecoins on Avalanche network.

For this purpose, the bridged USDC, USDT and DAI have been selected to investigate in detail.

• Among these three stablecoins, the USDCe has the highest application on Avalanche with 74% share.
• The usage of stablecoins on this network has highest application on June 13 with over 80 million token.
• As can be seen from the donut graph, the most popular usage for stablecoins on Avalanche is DEXs with near 80% of total usage.
• Dapps and DeFi programs take the next spots, respectively but domination of DEXs are considerably high.
• The cumulative volume analysis of stablecoins on Avalanche reveals the increasing trend with high slope specially after June 13th and July 18th.

On DeFi programs:

Each stablecoin on Avalanche has its own special application.

• The most popular Defi programs are Celer network and Aave.
• The popular usage of USDC and USDT is Celer network as shown in histogram.
• The most used program for bridged DAI ares Aave protocol and Maximizer.

On DEXs:

The application of stablecoins on DEXs has been distributed among three most used DEXs.

• The Curve Fi has dominated the application by 47.3% of usage and takes the first rank.
• The USDCe has been used mostly on Platypus finance.
• For USDTe and DAIe the most popular DEX is Curve Fi as shown in the related graph.

Author:

Credited by MZG

Discord handle: m.zamani#0361

References and useful links:

• Avalanche DOCs
• Avalanche explorers: Subnet and SnowTrace
• AVAX token