Avalanche Blockchain Overview
Introduction / Glossary
What is Avalanche?
Avalanche is a new and unique blockchain that combines custom built blockchains and addition to proof of stake consensus mechanism that helps achieve faster speeds and a powerful platform for developers to build on top of. It is compatible with the Ethereum toolkit, meaning developers are quite simply able to link their Ethereum dApps to Avalanche. These subnets allow individuals to create their own projects, while also staying connected to the mainnet. These subnets are very helpful in redistributing traffic, which very important for keeping transaction speeds high and fees low, something Ethereum 2.0 is looking to fix.
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Methodology / Metrics\
The goal of this dashboard is to analyze the entire Avalanche blockchain and see what trends and patterns we can learn based on its overall health. The different areas covered and their metrics are as follows:
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Users and Volume
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Top dApps (not including token contracts)
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Top token contracts
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Gas fees
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Successful vs failed transactions
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Transaction speed
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Special analysis on GMX
- a potential game changer and fast growing token / platform
Avalanche Overview Analysis
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The first graph is going to show that the total sum of AVAX being transferred per day is going down, however it is important to note that the value of AVAX is also trending down during this time. This means although it seems that less is being transferred we need to look at other metrics before we can know if it is people transferring less or the value declining
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Since the beginning of June there has been a consistent amount of unique users every single day and in total there have been 429,000 different wallet address’s that have made AVAX transfers since the beginning of May
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These users are not messing around when it comes to the value they are sending with an average value since June of $1361 USD per transfer and a total of $6.64 billion USD transferred in AVAX
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What is important to note is the total number of transfers vs the unique users everyday has been very consistent during the last couple of months, which would indicate that the blockchain is in good health especially considering the bear market that we are currently in
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The final graph is going to show users first transactions and only that first transaction, which will help us indicate how many new wallets are being created and used.
- As you can see over time we have seen a major decline in the amount of new users first transactions per day, however, it is important to note that even during the lowest points it was around 5,000 new users making their first transaction per day, which is very good considering the total number of transactions has stayed consistent during this time and not declined
Top 15 dAPPS Analysis
- The first important note before going into these different dAPPS is that any token contract has been removed from consideration and we will look at those contracts individually in another part of this dashboard
- As we can see the total interaction with dAPPS that are not token contracts are minimal compared to the transactions that we have seen before with an average of close to 1000 interactions a day
- The two most common subtypes are general contract and pools, followed by DAO’s and treasury
- The top 4 dAPPS take acount for 96.8% of all interactions, meaning out of the last 5 they only take up 3.2% of all transactions
- The avalaunch and celery network have been the most consistent in terms of interactions over the last couple months and there was one day with a major spike for avalaunch recording nearly 5,000 transactions
Top 20 Tokens Transferred on Avalanche
- Here we are going to look at the different token contracts and find the top 20
- Unsurprisingly wrapped AVAX accounts for over 50% of the top 20 transactions coming in with a total of 4,200,000 total transactions over the last two months
- What is also interesting to note is the next highest token contract is the egg token and that only has a total of 590,000 transactions over the last two months which is only 14% of wrapped AVAX
- The total transactions for these tokens has been fairly consistent being between 100k -150k and has slightly dipped below the 100k mark as a couple times towards the end of July
Gas Fees on Avalanche
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The gas fees on Avalanche are tiny coming in with a total of 103.4k AVAX and the average fee per transaction is only .0067 AVAX
- With a current value of $23.18, the time of writing is 8/4/2022, the total spent in USD would be $2,396,812 with an average charge of $.15 per transaction
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The total gas fees and the average gas fees have stayed fairly consistent over this duration of time
Transaction Success vs Failure Analysis
- A blockchain that has many failed transactions not going to be successful in the long run so it is important to see how many transactions are failing vs being successful
- Overall around 10% of transactions on Avalanche have failed and that seems to be quite high
- There have been a total of 1,565,000 million transactions over the last two months that have failed, which is a lot, however it is important to note that there have also been 13,850,000 transactions that have been successful, which is over 9x as big as the total number of failures
- Much like other graphs that have been looked at, it is easy to notice that the number of transactions has been consistent the ratio of failures vs success has stayed
roughly the same as well
Overall How is the Health of Avalanche
The overall health of Avalanche seems to be doing very well especially considering that we are in a bear market. This blockchain has still been able to bolster a minimum of around 5,000 new users per day, which is very good in a market like this considering their size. They value of AVAX has dropped and that is why the total USD value transferred per day has fallen because the total number of unique users and the total transactions has been very consistent. There are many different dAPPS that people use and even more token contracts that are actively being interacted with every single day. Wrapped AVAX has been the biggest selling point and has been purchased more than any other token. Although we are currently in a bear market it seem that the Avalanche blockchain is here to stay and will not be going away anytime soon. When the bull market hits, or even before, it might be worth your while purchasing some AVAX and watching it grow.
Transaction Speed Analysis
- One of the most important parts of any blockchain is the transaction speed as the slower the TPS the more traffic and that will lead to a higher transaction fee
- The average TPS is around 5 transactions per second, but has gone as low as 1 transaction per second or even as high as 360 transactions per second
- As you can see by the lines the average changes very little meaning for the most part that Avalanche is stable when it comes to processing speed of transactions
Special Token Analysis - GMX
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GMX is a decentralized spot and perpetuial exchange that provides low swap fees and zero price impact trades. Trading is supported by a unique multi-asset pool that earns liquidity providers fees from market making, swaps, leveraging, and asset rebalancing
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The borrow fee or the funding rate can be positive or negative. If the borrow fee is positive and you are shorting than you are paying to take out your position, however, that means if you long the asset, and the borrow rate is negative than you are actually going to be getting paid to take out your position, which helps GMX balance their protocol and earn revenue
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GLP is the GMX liquidity token and it is a collection of the assets on the GMX platform and buy purchasing it you are providing liquidity to the multi-asset pool and getting a huge APR
- Buy purchasing GLP you are no longer needing to monitor every individual crypto because you are in a basket of assets
- What is also interesting about the GLP token is that you are collecting fees and losses from traders when they are liquidated
- This being said if a trader earns any money from a trade it gets paid out from GLP, so by providing liquidity you are hoping traders are going to lose money when taking on leverage
- It is important to note that over time it has seemed to be about 50/50 in terms of profits and losses from traders so you will most likely not be losing lots of money if you do choose to provide liquidity on the GLP token
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GMX is also the governance and fee token, which can be staked, but most will go to an escrow GMX. Staked GMX will get you multiplier points which can boost the yield you earn on GMX
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When looking at the graphs we can observe that there has been a lot of transactions purchasing GMX coming out to $22,500,000 over the course of June and July.
- It is important to note that not all of the volume in trades were available and there were many null values in this table so these are only the transactions that we know of and it stops at July 22nd, but there are still transactions occurring for the GMX token. This is most likely due to the database being as new as it is
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When looking into the transactions we can see that the trend is upwards for unique users and for total transactions, whereas the trend for the entire Avalanche blockchain has seemed to plateau. This would indicate that interest in this platform is growing massively and could be a major reason that the token has done as well as it has. Over this time period there have been over 54,000 transactions from 4,360 different users.
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There was no way to find the price changes of the GMX token as it was not in the dim_labels of the Avalanche database, but by looking into the market over time it has only gone up during this month. On July 6th 2022 it was worth $17.91 USD and has since grown very quickly reaching an astounding price of $43.25 USD as of 8/5/2022. This shows the potential as it has grown by 2.41x over the bear market in just one month