Subnet transformation, Avalanche9000 brings a new Layer1 landscape
Following the announcement by the founder of 'Fat Penguin' to establish Abstract for the consumer market, another significant news has sparked discussions in the crypto circle: Avalanche officially launched the major network upgrade Avalanche9000, code-named 'Etna'. The official label it as 'the largest technological transformation in history', aiming to allow businesses and development teams to more easily and cost-effectively build Layer1 blockchains (also known as 'subnets'). If this direction is successfully implemented, a large number of new Layer1 projects may experience 'explosive growth' in 2025, positioning the Avalanche ecosystem at the center stage of the next market boom.
Source: Avalanche officially launched the major network upgrade Avalanche9000, code-named 'Etna'.
Avalanche has always been known for its advantages of 'high speed and low latency', but in the past, the subnet structure required nodes to stake 2,000 $AVAX (approximately $100,000) to run their own chain, which was quite expensive for many small and medium-sized teams. With the official implementation of Avalanche9000, the new proposals ACP-77 and ACP-125 are expected to lower this threshold to only about 1.3 $AVAX (approximately $64) per month, reducing initial operating costs by more than 99.9% compared to the traditional model. Developers no longer have to choose between 'Ethereum mainnet or self-built public chain', but can opt for the lightweight Avalanche Layer1 solution that is compatible with the EVM ecosystem. 'Changing the requirement from staking 2,000 $AVAX to a monthly fee of 1.3 $AVAX' has been described by many developers as an 'epic reform', and it is expected that a large number of new projects will flood in within a few months after the new system goes live.
Transaction costs are more friendly, the Etna update is highly anticipated
This wave of 'Etna upgrade' not only reduces the hardware and capital expenditure required for validators but also includes proposal ACP-125, which lowers the base fee floor on the mainnet C-Chain from the original 25 $nAVAX to 1 $nAVAX. In other words, when users send transactions on-chain, the fees are closer to a 'no-sense' level during low network load, which is a great boon for users who enjoy DApp operations or DeFi transactions on Avalanche. According to official data, the adjustment of the base fee is close to a 96% reduction, equivalent to opening up a more competitive trading environment.
Source: The adjustment of the Avalanche Base Fee is close to a 96% reduction
The Etna upgrade also introduces a dynamic fee mechanism to the P-Chain, changing the previous simple model of fixed fees. By adjusting the rates to respond to large transaction volumes or peak demands, Avalanche hopes to further address the issue of skyrocketing fees during network congestion in the past. On the other hand, the newly expanded Layer1 transaction types and cross-chain information (ICM) standards also provide more innovative flexibility for various decentralized applications that are about to go live.
Institutional preference, ecosystem expected to expand dramatically in 2025
The Avalanche team stated that this new method can encourage developers from different industries to use Avalanche technology to build subnets or Layer1 blockchains, and they expect a large number of new projects to move to the mainnet in 2025. Previously, Avalanche also announced the completion of a $250 million token sale, led by Galaxy Digital, Dragonfly, and ParaFi Capital, attracting significant attention from the industry. Ample funds combined with technological innovation mean that the Avalanche ecosystem may usher in a wave of large-scale construction and service explosion.
It is worth noting that this upgrade also optimizes the cross-chain communication function ACP-118, assisting each subnet (Layer1) and the mainnet to validate events and information more efficiently. This accelerates the implementation of various scenarios such as DeFi, NFTs, gaming, and tokenization of real assets; especially since the threshold for deploying a dedicated chain was previously too high, now it requires only 1.3 $AVAX per month, giving many businesses and institutions that were previously hesitant a chance to try going on-chain.
In the face of the upcoming new ecosystem, most market analysts are generally optimistic about Avalanche's development trend next year. If costs and operational thresholds are significantly reduced, coupled with the endorsement of mainnet consensus and security, the willingness of institutional funds to enter will increase significantly. In the future, industries such as finance, gaming, social networking, and prediction markets may compete to establish their own Layer1 to provide more efficient and customized blockchain services. At that time, Avalanche will also focus more on the multi-chain ecological strategy of 'on-chain unification'.
Avalanche's next step is a new multi-chain pattern
From the background of the Avalanche9000 upgrade, it can be seen that Avalanche intends to attract more institutions and developers to join the ecosystem through low thresholds and high flexibility. For blockchain entrepreneurs, traditional enterprises, or other large capital that are observing, this revision indeed brings an exciting opportunity. Driven by the 'Etna' reform, Avalanche will also transition from its existing subnet structure to a true multi-chain world, allowing the ecosystem to expand at a faster pace.
Source: Avalanche is competing to establish its own Layer1 in industries such as finance, gaming, social networking, and prediction markets to provide more efficient and customized blockchain services.
The 'decentralized finance + consumer entertainment' solutions within the Avalanche ecosystem may uncover previously unseen market spaces. Market participants generally expect that next year Avalanche will have significant opportunities in both technical applications and user growth, and whether it can successfully maintain developmental dividends and transition into a strong public chain in the next bull market has become a focal point of high observation within the crypto circle.
Further reading
Avalanche chain welcomes its largest upgrade! What has Avalanche 9000 done? Understand the developments and impacts.
Global consumption solved with one card! Avalanche launches cryptocurrency payment card, can it be used in Taiwan?
[Disclaimer] The market has risks, and investment should be cautious. This article does not constitute investment advice; users should consider whether any opinions, viewpoints, or conclusions in this article align with their specific situations. Investment based on this is at one's own risk.
'Avalanche's epic update is complete! Is institutional entry cost lower? Will it experience explosive growth next year?' This article was first published in 'Crypto City'
