- Avalanche has seen its total value locked reach a 9-month high, driven by AVAX price appreciation rather than greater protocol usage.
- Benqi is the leading DeFi protocol on Avalanche, accounting for over 50% of total value locked, which recently crossed $500 million.
- Alongside total value locked, DEX trading volume on Avalanche rose 193% in the past week to $13 billion, putting it on pace to surpass last November’s record.
The total value locked in decentralized finance (DeFi) protocols on the Avalanche blockchain has reached a 9-month high, coinciding with the recent rally of the network’s native AVAX token. This growth comes even as the number of locked AVAX tokens has hit its lowest point since August 2021, indicating that the increasing dollar value stems from AVAX’s price appreciation rather than greater protocol usage.
Benqi Leads the Charge
According to DeFiLlama, the leading DeFi protocol on Avalanche is Benqi, which operates as a non-custodial lending market. Benqi alone accounts for over 50% of Avalanche’s total value locked, which recently crossed $500 million. Other top protocols include Aave, Trader Joe, and GMX.
Trading Volume Growth
Alongside the total value locked, decentralized exchange (DEX) trading volume on Avalanche has also been expanding. Per DeFiLlama, trading volume rose 193% over the past week to $13 billion. If this trend continues, Avalanche is on pace to surpass November’s $27 billion monthly volume record.
Bullish Network Activity
According to IntoTheBlock, Avalanche transactions above 100,000 recently neared 1,000, signaling a bullish trend. However, this figure remains below activity levels seen during last year’s market peak.
Recognition for Avalanche Gaming
Additionally, Avalanche’s thriving gaming ecosystem has started attracting praise. The network’s games and metaverse projects have gained traction amid the growth of play-to-earn and move-to-earn models.
The AVAX Price Surge
The expansion of Avalanche’s DeFi activity follows a significant price surge for AVAX itself. Despite the wider market decline, AVAX gained 74% to hit a new 2022 high around $36, marking its best performance since May 2022. Over the past month, AVAX has risen 108% in value.
Conclusion
The combination of protocol growth, trading volume, on-chain activity, and AVAX’s price rally point to a bullish trend for Avalanche. With its DeFi and gaming ecosystems expanding, the network appears poised to continue gaining ground during the remainder of the market cycle.
