How Avalanche reimagined DeFi


This is not the first time that the native tokens of the Avalanche blockchain have experienced violent fluctuations. In February, the price of AVAX was as high as $60, but it reached its lowest point from June to July. But after bottoming out at $9.34, AVAX has now exceeded $60, and the current transaction price is $76. According to data from Cointelegraph Markets Pro, this makes it one of the top 20 cryptocurrencies with a market value of $16 billion. Avalanche is one of the first-tier blockchains labeled as the “Ethereum Killer”, and these blockchains have recently appeared to reduce the dominance of top altcoins in terms of total locked value (TVL).Of TVL’s $170 billion, Ethereum currently controls 67%, based on LlamaHowever, while this number looks high, it is actually much lower than in February, when it contained about 96% of TVL.

Avalanche background

Avalanche was developed in 2018 by Emin Gün Sirer, associate professor of computer science at Cornell University and Ava Labs. The blockchain protocol has high throughput and fast termination time. In 2019, it obtained initial funding through the sale of 18 million AVAX tokens, each at a price of 0.33 U.S. dollars, and the total amount is close to 6 million U.S. dollars. In the second year, another 24.9 million tokens were auctioned in a private auction, this time at $0.50 each, bringing an additional $12 million in funding. In July 2020, Avalanche received another $42 million through public token sales. On September 16, 2021, Avalanche’s latest round of financing received USD 230 million from various investors led by Polychain and Three Arrow Capital.This brings the total amount of funds US$290 million Although Avalanche’s mainnet has just celebrated its first anniversary, it still serves Avalanche.

How does Avalanche reimagine DeFi?

Avalanche is in an increasingly fierce first-tier competition, and companies such as Binance Smart Chain (BSC), Polkadot, and Terra are all vying for a larger market share of its main rival, Ethereum. Very similar to similar products, Avalanche’s scalability is also crucial. Avalanche has 4,500 transactions per second (TPS) and can be completed in less than three seconds.In contrast, Ethereum processes 15-30 transactions per second End of more than 1 minute. and, transaction fee Compared with Ethereum, it is more popular on Avalanche. The cost of Avalanche ranges from 75 nAVAX to 225 nAVAX (calculated from the current value of the coin from $0.0000048 to $0.0000144).

However, to compete with the pioneers of Ethereum requires more than just lower costs and faster transactions. Developers willing to build applications on Avalanche are necessary to promote adoption.In this regard, it is clear how Ethereum has the upper hand 2,585 Decentralized applications (DApps) listed.But even though it is only one year old, Avalanche already has Be attracted 320 items.

Source: Avax-Projects

Projects such as SushiSwap, Chainlink, Circle and The Graph all benefit from the smart contract infrastructure provided by Avalanche. Non-fungible tokens (NFT) have also found a home on Avalanche.For example, Topps, a sports-themed trading card company, casts Major League Baseball NFT collection It is called “Inception of Dreams” on the avalanche. Topps also cooperated with the German Football League Bundesliga to release the league’s video moments in two available card packs-all of which are NFTs on the Avalanche blockchain. In addition, the $230 million raised by Avalanche in 2021 will be dedicated to supporting this thriving decentralized finance or DeFi ecosystem.