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$200M Blizzard Fund Drives DeFi 2.0 Growth

Publish by Lucas at 14 November 2021

The Avalanche ecosystem has received a lot of excitement over the last week, causing the price of Avalanche to continuously reach new highs. Congratulations to all long-term AVAX holders, it has been a long journey. In this article, we will dive into some of the important updates throughout the week to evaluate the current situation of the whole ecosystem. Let’s get started!

Avalanche Ecosystem Highlights Last Week

Avalanche Major News

USDT launched on Avalanche

Tether has launched USDT stablecoin on the Avalanche blockchain after the first announcement in May 2021. The ecosystem has been growing at a rapid pace with Total Value Locked increased dramatically over the last 3 months from $300M to $15b.

This is a major milestone for Avalanche

USDT is the most popular stablecoin and plays an essential role in the DeFi market right now. This launch will definitely help to boost the growth of Avalanche ecosystem.

$200M Blizzard Fund

The most exciting news from last week is Avalanche Foundation launches a $200M Blizzard Fund to entice Innovation of the Avalanche Ecosystem. The new fund comes in separate from the last $230M and $180M incentives.

A huge $200M fund added to the ecosystem

The Blizzard Fund will be used solely for the development of NFTs, Gaming and DeFi applications as well. Half-dozen of the Ava Labs employees will migrate to Blizzard to provide technical support for young teams as the founding team expects the fund to be quickly deployed.

While other competitors such as Binance Smart Chain have released a bunch of incentive programs such as Most Valuable Builder III to boost NFT and GameFi. The Avalanche ecosystem was lacking in Gaming and NFT projects during the hype in the last few months.

⇒ With this event, we can expect NFT and GameFi categories on Avalanche to develop even more in the coming period, bringing more investment opportunities and user experience to the ecosystem.

SnowTrace

Surely everyone here knows about Etherscan as one of the most popular blockchain explorers, helping users not only track and understand block-level activity on the network but also access advanced, value-adding features.

A new tool joins the suite of Avalanche infrastructure with SnowTrace, an implementation of Etherscan custom-built for the Avalanche blockchain.

SnowTrace interface

SnowTrace replaces the existing Avalanche C-Chain Explorer to deliver a more highly-performance, feature-filled experience for the global community of Avalanche developers and users. It joins Avascan and Avalanche Stats as premiere explorers helping enrich the Avalanche community experience.

⇒ AVAX users now can utilize important information on the AVAX Chain-C to find new investment opportunities such as Wallet Transactions or Top Holding Portfolio in the ecosystem.

You can check top wallets in the ecosystem

Avalanche Statistics

Total Value Locked

The Total Value Locked continuously found new All-Time-Highs in the past week. With $15b in locked now, Avalanche becomes the 5th largest blockchains in the market.

Aave is still holding top 1 in Total Value Locked

Especially in the top 5 list, we have witnessed the surges of Wonderland (a new DeFi 2.0 project) and Blizz (newly launched).

⇒ The Avalanche is in the top 5 largest ecosystems, however, there are still many opportunities for unique projects to be successful. With the new incentive fund added, we can totally expect more to come.

Token Price

With several exciting news coming out during the week, the price of AVAX has been continuously increased and broken many new All-Time-High.

AVAX price reached many ATHs last week

Currently, AVAX price is sitting at $93.12 with the last All-Time-High reached at $96.46.

You can follow Avaxians to update important updates for Avalanche

However, is this a short-term hype? That is not the case, in my opinion, because the Avalanche ecosystem has had plenty of room for NFT and GameFi in recent months. Ava Labs is aware of this issue and is continuing to add support for the ecosystem to compensate for what was previously lacking.

⇒ This demonstrates their commitment to the long-term development of the ecosystem and their efforts to improve it.

Daily active Addresses

Daily Active Addresses on the network tend to decrease after peaking in October. However, the number of active addresses are remaining at high numbers. This proves that the ecosystem has been receiving quite a lot of attention from the market and long-term users.

Daily Active Addresses on Avalanche

New projects on Avalanche

  • Blizz: Blizz Finance is a decentralized and non-custodial liquidity market protocol that is operating on Avalanche. The project has just been launched but already achieved a huge total market size of $3B.
Total market size of Blizz already reached over $3b
  • Crabada: Crabada is an exciting play-and-earn NFT game set in the future occupied by fierce fighting Hermit-Crabs. The sale of the project opened on Avalaunch last week and raised a total of $400,000.
  • Impermax Finance: Impermax. Finance is an advanced DeFi platform that allows anyone to earn yield from liquidity providing with no impermanent loss.
  • Heroes of NFT: a new NFT gaming platform on Avalanche. Players can battle in the arena playing against each other and show off their skills with unique hero cards.

⇒ NFT and GameFi projects are currently appearing quite a lot on Avalanche. In the near future, we may see one of these projects become an Alpha player in the ecosystem.

Avalanche Ecosystem Analysis

Lending

Lending is still dominating other categories

Lending is the segment with the largest market share in the Avalanche ecosystem and accounts for 54%. In addition to the $200M support package, which has had a good impact on the lending segments in the ecosystem, causing the Total Value Locked volume to continuously reach All-Time-High and increase by 10-15%.

Other than that, there haven’t been any major updates throughout lending the lending sector.

Top lending projects on Avalanche

Among these projects, we can see the rise of a new Lending platform. It's Blizz Finance, which was inspired by Fantom's Geist Finance, the project has quickly achieved a market capitalization at $3b while having only been out for 2 weeks.

Furthermore, TraderJoe total value locked in the lending sector decreased 0.5% due to the new launching of Blizz Finance.

Wonderland (TIME) is still holding steady as one of the first DeFi 2.0 projects within its ecosystem. The new upcoming launchpad on Wonderland will be exciting as it opens up more opportunities for users and step by step become a unique DeFi 2.0 station platform.

See Also: What is DeFi 2.0?

⇒ Lending is one of the most important sectors in Avalanche. Projects that are maintaining a stable Total Value Locked level. The development of lending projects in the system will greatly affect the overview of the system. We should pay close attention to the updates of these projects.

DEX

Over the past week, the DEX platforms in Avalanche haven't changed much. TraderJoe still holds the number one position as one of the most complete DeFi Stations and has a high number of users. Curve and Pangolin remain in 2nd and 3rd positions

Additionally, Pangolin has experienced 20% growth in Total Value Locked volume over the past 7 days. The new proposal tokenomics will greatly affect the way Pangolin works in the near future.

See Also: What is Tokenomics?

The tokenomics upgrade is a huge step up for Pangolin

A fairly new project on top of the ecosystem is the newly launched Snowbank with an APY of up to 1,398.964%. This is a decentralized reserve currency that remains unbound by a peg which is solving liquidity ownership for users.

A massive APY on Snowbank

⇒ In general, DEXs in the Avalanche ecosystem have been remaining stable, showing that users are still in the ecosystem. However, the DEX sector is somewhat inferior to lending because the features are not very prominent.

⇒ The appearance of Snowbank marks the development of DeFi 2.0 projects gradually appearing on the ecosystem. In the future, we need to pay attention to these projects.

NFT & Gaming

The NFT and Gaming segments on Avalanche over the past week have had interesting updates as follows.

One of the first NFT platforms, Kalao, launched the Kalao NFT marketplace. This is by far one of the most notable events in the NFT array. Users like before will be limited by Lending and DEX projects, now they can skin in the game with many other areas like NFT.

You can trade NFTs on Kalao marketplace

There are also quite a few Game projects released in the past week such as Crabada, Chained Vampires, Boogey Birds, Bored Giraffe Academy.

As we all know, the previous NFT and GameFi array on Avalanche has very few projects. Up to this point, with the support of the $200M incentive program, more projects have been launched that mark the growth of NFT and GameFi.

⇒ In which, there will be top players in these categories leading in the ecosystem in the near future. Therefore, we need to keep an eye on new projects on the system and assess their potential.

Launchpad

The launchpad array is quite small on Avalanche. The most prominent of which is Avalaunch, which has also recently listed a number of projects such as Oh!Finance, Roco Finance, and most recently a game project, Crabada.

All projects listed on Avalaunch

Although there are few projects because the launchpad array on Avalanche is quite new, the projects have quite good ROI in which Kalao has grown more than 50 times and Roco Finance is more than 40 times since the listing price.

In the near future, as more new NFT and GameFi projects launch, we can see more projects listed on Avalaunch and users will also be attracted by high ROI listed projects.

Conclusion

Last week was a massive week for the Avalanche ecosystem with so much exciting news. To conclude, here are some highlights of the ecosystem that are worth mentioning:

  • The Blizzard program with a budget of $200M will be the driving force behind Avalanche's sustainable development in the future.
  • USDT launched on Avalanche will expand the use cases of the ecosystem and increase the capitalization deposited.
  • The projects listed on the launchpad with high ROI will attract more users in the upcoming time as new GameFi and NFT projects are thriving.
  • NFT and GameFi are well on their way to achieving a much better adoption level than they currently are. Although slightly slower than the market trend, this is also an additional area in Avalanche's ecosystem.
  • New DeFi 2.0 projects have gradually appeared on Avalanche such as SnowBank and Wonderland (TIME). With the improvement of DeFi 2.0, we need to note the development and volatility of these new projects in the near future.

Overall, I have provided an overview of the Avalanche ecosystem in the last 2 weeks. I hope you have gained useful information throughout the article. If you have any questions, please leave a comment in the discussion section below.

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Lucas

Lucas

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