đ”đ”Once Rising Star Altcoin Sees Major User Drop
Once seen as a shining star in the blockchain world, Avalanche is now facing a significant decline in user activity and struggling with institutional adoption.
The number of active addresses on Avalancheâs C-chain has fallen to a 12-month low of 31,000, a level not seen since October 2023. This is in sharp contrast to the networkâs peak of 99,000 active addresses in December 2023. The December increase was driven by a surge in activity related to Bitcoinâs Ordinals applications and inscriptions, which are methods of storing data on the blockchain. This was further fueled by JPMorgan and Apolloâs announcement of plans to use Avalanche for real-world asset tokenization, highlighting the networkâs potential for institutional adoption.
However, the sharp decline in the number of active users since then highlights the difficulties that blockchain projects face in maintaining long-term engagement, especially in the current bearish market. This decline in user activity can be attributed to a variety of factors, including the overall market downturn, increased competition from other Layer 1 and Layer 2 solutions, and reduced speculative interest.
Avalanche was designed as a high-throughput, low-latency blockchain, aiming to solve scalability issues common in legacy networks. It aimed to provide decentralization, scalability, and security with its unique consensus mechanism and multi-chain architecture. However, it turned out to be difficult to maintain user interest beyond speculative cycles.
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