The daily active users of Avalanche have continuously reached historic highs in the past 6 months with no signs of slowing down. What is causing this growth? Cryptocurrency analyst Emperor Osmo analyzes the reasons for this growth based on several data indicators such as active addresses, stablecoins, gas fees, and more.
Upon further investigation, it can be seen that stablecoins and DeFi dominate activity on Avalanche, accounting for 34% of activity on the $AVAX chain each. Stablecoins reveal a positive trend: 1) $USDC activity is increasing over time; 2) $USDT holds the dominant position at a historical high of 49.82%. Users are actively shifting towards USDT, driving this growth, with stablecoin liquidity increasing by nearly $100 million in the past two weeks.
Analyzing the dashboard, it can be seen that activity on Avalanche is mainly driven by users going to $JOE. However, users now seem to be using $STG to bridge/swap assets. On $AVAX, 73% of daily user activity can be traced back to Stargate. Are the growing users simply trying to claim airdrops? Users are likely shifting from expensive $ETH to lower-cost ecosystems, such as $AVAX closely connected with LayerZero, as gas trends undoubtedly indicate. Rumors suggest LayerZero is the next big airdrop after $ARB. So seeing this level of activity is not surprising, as many top Avalanche dapps like Trader Joe integrate L0 technology, expanding their liquidity.
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Reference: https://twitter.com/Flowslikeosmo/status/1662609654638170113
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