Even though Avalanche witnessed a surge in terms of smart contract deployment, it wasn’t able to do well in the DeFi sector.
Its DEX volume decreased materially, falling from 311 million to 13.74 million (at press time) in the span of a few months. This ended up affecting Avalanche’s TVL, which also declined.
Additionally, interest in BTC.b also diminished. For context, BTC.b is a wrapped Bitcoin token on Avalanche used for DeFi purposes, with the ‘b’ standing for ‘wrapped Bitcoin’. The Bitcoin is held in custody and corresponding wrapped tokens are issued on Avalanche for use in DeFi applications such as trading, yield farming, and borrowing.
According to Dune Analytics’ data, all Avalanche network DEXes witnessed a fall in BTC.b usage.
Trader Joe, one of the most popular DEXes on the protocol, suffered the most. According to Dapp Radar’s data, its overall volume fell by 40.2% in the last 24 hours At press time, the cumulative volume on the network was $7.2 million.
As a result of this falling volume, the number of transactions on the protocol also fell by 1.06% in the last 24 hours.
The protocol’s impact was also felt in the NFT sector. According to Santiment’s data, the overall number of NFT trades being made on Avalanche fell significantly, sitting at 581 at press time.
