- Avalanche’s on-chain activity and userbase declined significantly in Q3 2022 compared to previous quarter, with drops in daily active users, transactions, and total value locked.
- Avalanche struggled to regain momentum after crypto market downturn, with TVL plummeting from all-time high of $11.5 billion in December 2021.
- Ava Labs, developer of Avalanche, laid off 12 employees this week amid network’s struggles, though AVAX token has rallied recently.
Avalanche, once a dominant layer 1 blockchain, has struggled to maintain growth and activity. Its on-chain metrics and userbase declined significantly in Q3 2022 compared to the previous quarter.
Transaction Volume and Active Addresses Fall
Daily active users on Avalanche’s flagship C-Chain peaked at 86,000 in Q3, down from 117,000 in Q2. Daily transactions also dropped from a range of 200,000-550,000 to 136,000-504,000, hitting a low of 110,000 on Oct 15.
Total Value Locked Plummets
According to DeFi Llama, Avalanche’s total value locked (TVL) fell 27% from $7.06 billion to $5.12 billion in Q3. While TVL has rebounded 10% to $5.64 billion, daily transactions remain low at 232,000.
Network Struggles to Regroup
Avalanche has struggled to regain momentum after the crypto market downturn. Its TVL plummeted from an all-time high of $11.5 billion in December 2021. The layer 1 has tried to differentiate itself with subnet architecture and real-world asset tokenization, but faces stiff competition from Ethereum layer 2s and layer 0s.
Layoffs Hit Team
Earlier this week, Emin Gun Sirer, founder of Ava Labs, announced 12 layoffs at the company. Despite recent struggles, Avalanche’s AVAX token has gained 49% in three weeks amid the broader crypto rally.
