Avalanche Transactions Mooned During USDC’s Temporary De-Peg in Q1 2023: Nansen

During the first quarter of 2023, the USD Coin (USDC) experienced a temporary de-peg, causing an unprecedented surge in Avalanche transactions. According to blockchain analytics firm Nansen, the incident led to a significant increase in daily transactions on Avalanche, highlighting the network’s robustness and ability to handle large-scale activity. The report suggests that the incident may have triggered a considerable upswing in investor interest towards Avalanche, making it a popular choice among cryptocurrency traders.

Avalanche Sees Volatility in Daily Transactions on C-Chain

Avalanche, a blockchain platform known for its smart contract capability and ultra-fast transactions, has seen a heavily volatile daily transaction count on the Avalanche C-Chain. The C-Chain is the default smart contract blockchain on Avalanche, which allows the creation of any Ethereum-compatible smart contracts and runs concurrently with the X-Chain used for sending and receiving funds in the form of AVAX tokens.

According to Avalanche’s fourth-quarter report shared with CryptoPotato, data and analytics platform Nansen reported that the number of transactions on the network kept oscillating between ~90k and 200k. However, a sharp spike over this range to 290k was seen on March 11th, driven by Trader Joe, USDC, and two unlabelled bot addresses. Nansen’s data suggested that many players took advantage of the market panic caused by USDC’s de-peg on that day.

Additionally, Avalanche saw a significant increase in the number of unique addresses transacting on the network, recording over 120k daily active addresses on March 10th and 11th. The average gas paid followed a similar pattern to the transactions, except for January 1st, where it exceeded 40,000 despite no notable increase in the transaction count.

Comparing gas fees with Ethereum, Avalanche’s average daily gas paid on C-Chain was significantly lower in the first quarter, with users only paying between $0.07 to $0.32. Despite the sudden spike in transactions on both chains on March 11th, the average gas paid on Avalanche C-Chain is still 76 times lower than on Ethereum.

Mega Septiandara, a research analyst at Nansen, stated that “Avalanche marked a successful start to the year with significant gains combined with multiple product releases and partnerships aimed at powering adoption and reinstating faith in the sector.”

AVAX Token Performance

In addition to substantial growth in overall transactions and active addresses, Avalanche’s native token, AVAX, charted gains. Starting the year at $10.9, AVAX gained 60% in terms of YTD and was currently trading at $17.55.

With Avalanche’s strong focus on driving innovation and Nansen’s positive analysis of the platform’s growth potential, it’s no surprise that investors are bullish on AVAX’s future trajectory.

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