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Avalanche Revenue Drops 46% in Q2: Market Cap Slips to 11th Position

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According to Messari’s latest report, the Avalanche (AVAX) ecosystem has undergone very drastic changes in Q2 2024. After two-quarters of increasing value, AVAX made a sharp correction, with its market capitalization falling to $11.6 billion, a decrease of 43% from the previous quarter.

Nonetheless, out of this dark cloud, a silver lining appears. The quarterly data of the previous year show that the circulating market cap is up to $4.5 billion, which is a growth of 157% from $3 billion in Q2 2023. The market cap of AVAX dropped to 10th place, but it was still quite strong, making it one of the few currencies to achieve such a feat.

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Source: Messari

Revenue generation on the Avalanche network has been adversely affected, with a steep decline of 46% quarter-over-quarter, dropping from 176,700 AVAX to 96,200. This decline was mirrored in USD terms, where revenue dropped by 53%, from $7.5 million to $3.5 million.

The decrease can be partly related to the long-lasting decline in on-chain activities, which is supported by the inscription’s link. Experts forecast a revenue rise as on-chain activities at the different smart contract platforms are expected to begin revamping.

Avalanche Tokenomics and Staking Dynamics

Moreover, Avalanche’s tokenomics indicate that all revenue generated is burned, and validators and stakers are given newly minted AVAX tokens. The total supply is capped at 720 million tokens, with the first half reserved for staking rewards, which depend on the staked amount and duration.

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Source: Messari

The annualized inflation rate decreases slightly and falls to 5.2% in Q2. Nevertheless, staking, which is backed by a 6% increase in staked AVAX, is still bullish, mainly because of new initiatives aimed at boosting staking engagement that has been partly responsible for this result, despite the decrease in the active validator count, which was down 7% to 1,558.

Transactions on the network also shifted, with the global average daily transactions falling 57% to 201,500. The decline is a sign of the general crypto market slump after Q1’s heightened activity. Nevertheless, some protocols like Tether (USDT) and GMX recorded increases in transaction volumes, which means there are some parts of the market where the trend is contrary to the general trend.

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Source: Messari

Looking ahead, Avalanche is more than ever focused on tech advancements and community-driven proposals to enhance its ecosystem in the long term. This is proof of commitment to making it easier for institutions to enter and to decentralize their network even more.

Related Reading | Crypto Bill: Congressman Rose Introduces BRIDGE Act for Better Oversight

TRON’s Next Big Move: A Billion-Dollar Bet

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Justin Sun-led TRON is making waves in the blockchain space, as indicated by its booming profits. The recent Messari report highlighted that the platform’s quarterly revenue in Q2 of 2024 reached a substantial $117.5 million, ranking third among all smart contract platforms.

The report has caught the attention of TRON’s founder, Justin Sun. In a statement, Sun expressed optimism about the platform’s future, predicting that it could reach a revenue milestone of $1 billion within the next year. He attributed this confidence to the consistent burn revenue implemented by TRON, which has averaged around $3.88 million per day in recent times.

To achieve this ambitious goal, the TRX network would need to increase its revenue by approximately 2x. While this might seem challenging, Sun believes it is entirely feasible given the platform’s current trajectory.

TRON
TRON's Next Big Move: A Billion-Dollar Bet 5

The report from Messari further highlights TRON’s financial health, noting that its annualized revenue in Q2 2024 reached $470 million. This substantial figure underscores the platform’s growing popularity and its potential for continued success.

Conservatively, in the next 12 months, TRON’s total revenue could hit $3 billion, with $1 billion burned and $2 billion given as rewards to stakers and for transaction subsidies. If the meme strategy succeeds, it could reach $4 billion.

TRON vs. Solana: Meme Coin War Heats Up

The Tron ecosystem is making rapid strides after its foray into the meme coin arena. Recently, it launched a new platform called SunPump rivaling Solana’s Pump.com. In just weeks, SunPump generated over $1.1 million in revenue, fueling a memecoin frenzy on the TRX network. 

Among all the TRX meme coins, the SUNWUKONG token skyrocketed by 20,462% in a single day, highlighting meme coin potential.

Despote critics questioning the long-term feasibility of these asset classes, Sun underscored the importance of community engagement and fair launches in building user loyalty and in driving growth. According to him, community-driven meme coins are a better alternative than venture capitalist-backed projects with inflated valuations.

As TRON continues to expand its reach and attract new users, it remains to be seen whether it can achieve Sun’s ambitious revenue target. However, the platform’s strong financial performance and positive outlook suggest that it is well-positioned for future growth.

Avalanche (AVAX) Faces October Volatility: Price Swings and Promising Potential

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October began with a promise for AVAX, the native token of the Avalanche network. Within the first week of the month, AVAX witnessed a bullish surge, pushing its value up by more than 10%. However, the crypto market’s capricious nature took a turn, and a trend reversal ensued, causing the coin to shed its hard-earned gains.

The ominous-sounding Death Cross played a role in this shift, causing AVAX to erase all its gains from the initial price jump. The second week of October didn’t fare any better, as the coin dropped an additional 5%. 

AVAX 1M graph coinmarketcap 3

The third week saw a bearish trend trap, with bearish forces pushing AVAX’s price down, reversing any gains that had been made. Despite this, AVAX managed to hold its support level, returning from its weekly low of $8.77, with the current trading price at $9.19, albeit still lower than its monthly peak of $11.14.

At present, the Avalanche price hovers perilously close to its resistance trendline. Bulls are attempting to stage a breakout, potentially setting the stage for a significant price action in the coming days. 

AVAX 7D graph coinmarketcap 5
Source: CoinMarketcap

If they succeed in breaking through the resistance trendline, AVAX’s price could gain momentum and aim to test the $9.60 resistance level. Should this momentum persist, AVAX might even make a run at the upper resistance level of $9.96 in the near future.

Conversely, if the bears continue to dominate the market, AVAX’s price may breach its support level at $9.11, further losing momentum and a sustained bearish influence. In a worst-case scenario, if the bulls fail to maintain control, AVAX could test a critical support level at $8.75.

Avalanche Promising Insights from Q3 Report

Despite the tumultuous market conditions, there’s a glimmer of hope for AVAX’s potential rise. According to Messari’s research, the State of Avalanche in Q3 2023 reveals some promising insights. Active addresses on the Avalanche network have remained steady, except for the impact of LayerZero-related activity, which saw a sharp drop-off in the second quarter.

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Source: Messari

In the DeFi space, total value locked (TVL) fell by 28.8% in the third quarter compared to Q2. However, stablecoins have defied this trend, remaining on the Avalanche network. Partnerships in gaming and real-world assets (RWA) have been key highlights in Q3, with new subnets taking advantage of Avalanche’s customizability.

Despite a 62% DFK activity drop, the largest subnet by transactions in Q2, Dexalot usage continued to rise, with transactions increasing by 110% in Q3. Furthermore, the announcement of Hyperspace launching support for Avalanche NFTs and the release of the Dokyo collection resulted in the highest NFT sales in over a year, with over 160,000 transactions in Q3.

Well, the tug-of-war between bulls and bears will likely determine its fate in the days to come, while promising developments and partnerships offer a ray of hope for those who believe in its long-term potential.

Related Reading | Is Bitcoin The New Gold? Navigating A ‘Quality Flight’ Amidst US Bond Turbulence

Solana’s Q3 Journey From Setbacks To Triumph

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Amidst fluctuating market dynamics, Solana [SOL] has emerged as a resilient force, demonstrating commendable growth and stability. A recent financial analysis conducted by Messari has provided compelling insights into SOL’s performance during the third quarter of 2023. During this period, SOL, the native token of the Solana network, faced a significant challenge when the SEC focused its regulatory attention on major exchanges like Coinbase and Binance, categorizing SOL as a security along with other assets.

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Solana's Q3 Journey From Setbacks To Triumph 11

Like many other cryptocurrencies, SOL experienced a sharp decline in value, plummeting by 34% at the close of Q2. Despite this setback, the altcoin demonstrated remarkable resilience compared to its counterparts. As Q3 commenced, SOL not only recovered from the dip but also showcased a noteworthy 17% increase in its market capitalization, surpassing $8 billion. This surge propelled SOL from the 10th to the 7th position in terms of market capitalization rankings.

A closer look at the network analysis reveals Solana’s robust transaction system. Throughout the third quarter, it maintained steady and affordable transaction fees, standing at an average of $0.0002 per non-vote transaction. Innovative features like priority fees played a crucial role in curbing network spam and ensuring smooth operations, preventing popular contracts from congesting the network.

Solana’s security and decentralization efforts also showed positive trends. The total staked SOL increased by 2% to reach 405 million, placing Solana firmly in second place, just behind Ethereum, in terms of total staking market cap. Despite a slight decrease in the Nakamoto coefficient, an industry-leading metric measuring network resilience, Solana’s validator network remained robust and reliable.

Solana Network Outage Recovery

One of the standout achievements of the quarter was Solana’s impressive track record of uptime. The network approached its all-time high in days since an outage, a testament to the effectiveness of recent upgrades and technical enhancements, including QUIC, stake-weighted Quality of Service [QoS], and local fee markets.

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Solana's Q3 Journey From Setbacks To Triumph 12

In the realm of decentralized finance [DeFi], Solana experienced a significant boost with a 32% increase in total value locked [TVL], reaching $368 million. This growth was driven by the launch of various DeFi and liquid staking protocols, such as MarginFi, Jito, Cypher, and BlazeStake, which introduced innovative point programs to attract users.

Despite concerns surrounding the potential liquidation of over 57 million SOL tokens held by FTX, SOL’s market cap defied the odds, growing by 17% QoQ. FTX/Alameda’s SOL holdings are subject to specific unlock schedules, providing assurance to the market. As the bear market looms, Solana’s robust network and thriving ecosystem position it to emerge even stronger, showcasing the resilience and potential of this cutting-edge blockchain platform.

Cardano’s Accumulation Hits 12-Month High Amidst Transaction Spike

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Sharks and whales have been persistent on Cardano as ADA accumulation has returned to its highest level since September 2022. According to Santiment data, individuals who own between 100,000 and $10 million worth of ADA tokens have added more than $116 million since its most recent peak on May 21.

The robust growth in accumulation came at the same time as a spectacular increase in its transaction volume, which has been growing exponentially virtually every week for the previous six months as the price approaches $0.30. The transaction volume saw over 67 billion in ADA in back-to-back weeks, as shown in the image displayed below, a feat last seen in September 2021.

The reason behind the surge has been attributed to several upgrades that were deployed earlier this year, attracting both users and developers to the Cardano network. This has been further corroborated by a study led by popular analytics firm Messari.

In the second quarter, the leading layer-1 blockchain experienced excellent growth in terms of value-locked and transactional metrics compared to the first quarter due to technical advancements and increased developer engagement.

The analysis commissioned by Input Output, the company behind Cardano, also noted that while transaction activity increased, the number of daily users dropped by 4%, marking the fourth reduction in address activity in the previous five quarters.

The ratio of transactions to active addresses has been growing steadily over the past five quarters, suggesting that the average user is more active now than they previously were. In Q2, the Transaction / Active Address ratio of 1.19 was up 6.1% QoQ and 13.2% YoY.

Furthermore, Cardano’s average daily dApp transactions have also increased for the third consecutive quarter. Dapp usage soared significantly in Q2 with a significant 49.0% rise from the prior quarter, maintaining an average of 57,900 daily transactions.

Meanwhile, Cardano became fertile ground for a groundbreaking non-financial utility in crypto.

Cardano Startups Release ADAmail

Prominent Swiss technology builders in the Cardano ecosystem, NMKR and IAMX have launched a new product called ADAmail. One can able to email every wallet address on Cardano as well as view received emails with ease, using this method, the blog read.

While the exact dates for the pre-sale of Access Passes and the official launch of ADAmail are currently under wraps, ADAmail promised to deliver a host of features designed to enhance the communication experience.

Solana Soars in Q2 2023: Details

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The State of Solana in the second quarter of 2023 can be summarized as a period of remarkable growth and success. The Solana blockchain ecosystem has experienced significant advancements, establishing itself as a leading platform for decentralized applications (dApps) and decentralized finance (DeFi).

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Source: Messari

During this period, Solana’s network achieved exceptional performance, handling high transaction volumes with remarkable efficiency. The blockchain’s throughput reached unprecedented levels, enabling fast and cost-effective transactions. Solana’s robust infrastructure and consensus mechanism contributed to its scalability, providing a seamless user experience.

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Source

The Solana ecosystem witnessed a surge in developer activity, with numerous innovative dApps and projects being built on the platform. This growing developer community showcases the platform’s versatility and potential for creating diverse applications across various industries. The Solana Foundation continued to support developers through grants, partnerships, and educational initiatives, fostering an environment of collaboration and innovation.

The decentralized finance sector on SOL experienced substantial growth during Q2 2023. A multitude of DeFi protocols emerged, offering users opportunities for lending, borrowing, yield farming, and trading. These protocols leveraged the token’s fast transaction speeds and low fees to provide a seamless and efficient DeFi experience. The SOL ecosystem became a hub for DeFi enthusiasts, attracting liquidity and investment.

Furthermore, SOL gained significant attention from institutional investors and venture capital firms during this period. The platform’s robust infrastructure, scalability, and developer-friendly environment made it an attractive choice for those seeking to invest in the blockchain space. This increased interest from institutional players further validated SOL’s potential as a leading blockchain platform.

Solana’s Strategic Alliances Propel Growth and Adoption

Partnerships played a crucial role in SOL’s growth and adoption in Q2 2023. The platform established collaborations with prominent projects, both within and outside the blockchain industry. These partnerships aimed to expand the utility and reach of Solana’s ecosystem, enabling integration with other platforms and facilitating the development of cross-chain applications.

Looking ahead, SOL’s prospects remain bright. With its impressive performance, growing developer community, and increasing adoption across industries, SOL is poised to become a major player in the blockchain space. The platform’s scalability, low transaction fees, and fast settlement times provide a strong foundation for continued growth and innovation.

In summary, the State of Solana in Q2 2023 showcased significant achievements and milestones. The platform’s exceptional performance, expanding ecosystem, and growing recognition from institutional investors highlight its potential to shape the future of decentralized technologies. Solana’s trajectory and accomplishments position it as a formidable contender in the blockchain industry.

Unique Dynamics Of Polygon: The Relationship Between Market Cap & User Base

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Messari, a leading cryptocurrency analytics firm, has made an intriguing observation about Polygon’s market cap and user base dynamics. According to a recent tweet, these two metrics exhibit distinct patterns that do not move synchronously. Instead, they can be divided into three phases: Growth, Deviation, and Maturation.

During the first phase, known as Growth, user activity on Polygon lags behind market cap expansion by approximately two months. Despite the lag, there exists a strong correlation of 0.96 between the two factors. At this stage, the cumulative market cap of Polygon’s native token reached 10 billion in January 2021.

Moving into the second phase, Deviation, the market cap continues to grow primarily due to the rise of MATIC, Polygon’s native token. However, user growth experiences a slowdown, deviating from the upward trajectory of the market cap.

Finally, in the third phase, Maturation, the user base of Polygon starts expanding independently of the market cap. It suggests that the project’s adoption and user engagement are no longer solely dependent on the valuation of the native token.

This insightful analysis sheds light on the complex relationship between market cap and user base on Polygon, highlighting the unique phases of Growth, Deviation, and Maturation that the project has undergone.

Polygon (MATIC) Price Analysis

MATIC is currently showing bearish signs, as per the latest data from CoinMarketcap. The cryptocurrency is trading at $0.8599, down by about 2% in the last 24 hours. However, the weekly chart recorded a decline of about 1.36%, indicating some market volatility. 

MATIC 1D graph coinmarketcap
Source: CoinMarketcap

In addition, MATIC’s trading volume has witnessed an increase of 18.21%%, reaching $219,105,764, whereas the market capitalization has decreased by 1.91% in the last 24 hours.

MATIC has been facing ongoing challenges. It experienced significant losses of over -14.7% in the past month, making it one of the worst-performing assets in the market, according to CoinGecko data.

According to Polygon’s technical analysis, there is a bearish trend indicating a predicted price decrease of $0.00095 within the next 7 days, reaching $0.8592 by May 29, 2023.

In the short term, the machine learning algorithm suggests a neutral trend for MATIC. Investors can anticipate a slight increase or a possible decrease in the next few hours.

Related Reading | Bitcoin’s Recent Drawdowns Pale In Comparison To Previous Bull Cycles: Glassnode

XRP Ledger (XRPL) 2023 Q1 Report: 56% Price Surge, Key Insights 

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In a recent report published by Messari, the state of the XRP Ledger (XRPL) in the first quarter of 2023 was analyzed, revealing some key insights into the network’s performance and developments. 

The report highlights a significant increase in activity on the XRP Ledger, with daily active addresses and daily transactions rising by 13.9% and 10.7% quarter-over-quarter (QoQ), respectively.

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Messari

One of the standout findings of the report was XRP’s price surge, experiencing a 56% QoQ increase from $0.35 to $0.54. Interestingly, XRP outpaced the total crypto market cap in Q1, largely due to positive news emerging from the ongoing legal case between Ripple and the U.S. SEC.

XRPL: Key Metrics & Performance Analysis

The report also shed light on the XRP Ledger’s NFT transactions. Although NFT activity experienced a decline in QoQ, there were still notable figures, with 436,000 NFT mints and 277,000 NFT offers accepted. 

The XLS-20 Standard, which maps NFT transactions, introduced five new transaction types, and an additional five types are currently under the proposal.

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Messari

Two significant developments on the XRP Ledger during Q1 were the launch of the Coreum and Flare Network sidechains. These sidechains mark a significant expansion of the XRPL ecosystem, with future projects like Futureverse’s Root Network and Hooks expected to enhance its capabilities further.

The report provides an informative primer on the XRP Ledger, highlighting its decade-long operation and its offering of fast, energy-efficient, cross-currency, and cross-border payments. 

The XRPL supports native Issued Currencies, a decentralized exchange (DEX), escrow functionality, and token management. While it does not support smart contracts at the base layer, the XRPL’s native capabilities enable it to perform similar functions as other networks.

Financially, XRP ranks as the sixth largest cryptocurrency by market capitalization, amounting to approximately $28 billion in Q1 2023. The XRPL averages around 15 transactions per second, with the potential capacity to support up to 1,500. 

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Messari

Transaction fees on the network are deterministic and cost 10 drops per transaction, with a drop being a millionth of an XRP, valued at a fraction of a cent.

The XRP Ledger’s ecosystem has attracted support from various entities, including Ripple, XRPL Foundation, XRPL Labs, and XRPL Commons, among others. 

The network aims to provide a digital payment infrastructure for both individuals and existing financial entities like central banks, going beyond the narrow focus of peer-to-peer transactions.

Nevertheless, the report highlights the XRP Ledger’s growth and increased activity in Q1 2023. With the introduction of sidechains, ongoing developments, and the anticipation of new token standards, the XRPL ecosystem is poised for further expansion and acceleration in the coming months.

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Cardano’s Q1 2023 Report: Surge In Market Cap & TVL Signals Network’s Rise In Crypto Ranks

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Cardano, one of the largest cryptocurrency networks, saw a significant increase in market capitalization and total value locked (TVL) in Q1 2023, according to a recent Messari report. 

Cardano’s Q1 Growth Performance & Financial Overview

The market cap of Cardano’s native token ADA rose 54% quarter-over-quarter (QoQ) from $8.6 billion to $13.2 billion, moving the network up from ninth to seventh largest network by market cap. 

As per the report, the TVL of Cardano grew by 172% QoQ from $50.8 million to $138.3 million, driven by established protocols like Minswap and newer protocols like Liqwid Finance.

Stablecoins such as Indigo’s IUSD and Djed’s DJED drove total stablecoin value up 261% QoQ, contributing to the overall TVL increase. In addition, the first Hydra Head, a Layer-2 state channel scaling solution, was opened on the mainnet, offering a solution to scaling issues on the network.

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Despite the growth in market capitalization and TVL, new addresses and average daily transactions decreased by 71.5% and 10.6% QoQ, respectively.

The average transaction fee increased from $0.11 to $0.12. Still, it remained lower than the average transaction fee of $0.17 in Q3 2022, indicating that transaction fees are decreasing given the same amount of network traffic.

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Cardano’s treasury balance grew to 1.21 billion ADA during Q1, with a 100 million ADA increase in line with growth from previous quarters. 

The value in ADA terms increased 9.1% QoQ, while the value in USD terms increased 66% from $278 million to $460 million. The nominal staking yield on Cardano is generally 3.3% for ADA delegators, although it can vary by stake pool.

Cardano’s first sidechain, Milkomeda C1, launched in early 2022, bringing EVM compatibility to the network. While its TVL and activity metrics declined since Q2 2022, native DEX Blueshift still maintained almost 50% dominance in TVL.

Nevertheless, Cardano’s growth in market cap and TVL in Q1 2023 indicates that the network is gaining traction in the cryptocurrency market. Despite the decrease in new addresses and average daily transactions, the growth in the network’s DeFi ecosystem and the opening of the first Hydra Head on the mainnet offer potential solutions to the scaling issues.

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Ripple Gains A New Ally: Messari CEO Ryan Selkis Voices Support For XRP Ledger

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Blockchain payments firm Ripple Labs has gained a new ally in the form of Messari co-founder and CEO Ryan Selkis, who recently took to Twitter to express his support for the company. 

https://twitter.com/twobitidiot/status/1638217129831923714

Despite having been critical of Ripple in the past, Selkis now believes that the XRP-SEC case should be won by Ripple and that the XRP Ledger should be given the opportunity to compete fairly on a global scale.

Ripple’s Potential: XRP Ledger’s PoA Algorithm and IOUs

In a tweet thread by Messari, it was shared that the demand for digital payment infrastructure is increasing, despite the external pressures being applied by U.S. regulatory authorities. 

According to the tweet, the XRP Ledger (XRPL), which Ripple supports, can provide this infrastructure for individuals and existing financial entities such as central banks.

One of the unique features of the XRPL that the Messari tweet highlighted is its use of a Proof-of-Association (PoA) consensus algorithm, which requires each node to set a list of trusted nodes (UNL) that it will rely on for consensus. 

All nodes on the XRPL run the same free, open-source software called “rippled.” Validators are nodes involved in reaching consensus and voting on improvement proposals, while stock nodes receive, relay, and process transactions. Nodes rely on their UNL to finalize the state.

The thread further elaborated that the XRPL’s Issued Currencies (IOUs) allow for the creation of multiple assets. While its Authorized Trust Lines enable issuers to choose which wallets can interact with their tokens. Additionally, the XRPL has a central limit order book, supporting low-liquidity IOUs.

Despite facing regulatory challenges, Ripple and the XRP Ledger are making progress. Additionally, with support from industry leaders like Selkis and others, the company is poised to continue making strides toward its goal of revolutionizing the world of finance.

Community Response To Selkis’s Support Of Ripple Labs

Ryan Selkis’ tweet in support of Ripple Labs and the XRP Ledger has garnered a lot of attention from community members. Many responded positively to Selkis’ observations, with one person saying that the XRPL is impressive for so many reasons and that digital assets should have a level playing field to compete with each other. They believe that true competition will drive innovation and help grow the space.

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Others expressed their appreciation for Selkis’ support, with one person saying they were glad to have him on their side. Another community member pointed out that there should be no sides and that it’s all of us versus the existing system.

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Many also acknowledged the potential of the XRPL, with one person applauding the thread and stating that it’s clear that the technology is good and deserves to compete. They expressed regret that Ripple was ridiculed in the beginning instead of being supported but were glad that things were changing.

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