- Avalanche’s DeFi TVL exceeds $2 billion for the first time in over two years.
- The Octane upgrade significantly boosted Avalanche’s network activity.
- Institutional and retail activity spiked due to reduced transaction fees.
Avalanche’s DeFi ecosystem has seen a remarkable resurgence, with its total value locked (TVL) surpassing $2 billion for the first time in over two years, fueled by recent upgrades and increased activity.
This milestone indicates renewed interest, attributing growth to institutional engagement and enhancements, signaling a potential turning point in Avalanche’s financial ecosystem post-2022 downturn.
The Avalanche network’s DeFi Total Value Locked (TVL) has surged beyond $2 billion for the first time in over 2 years, largely driven by increased institutional and retail activity following the Octane upgrade.
This growth represents a 33–42% year-on-year increase from the previous year, highlighting renewed interest in the Avalanche ecosystem. Key contributors to this development include Emin Gün Sirer and Kevin Sekniqi of Ava Labs.
The surge in June 2023 saw daily active users on the Avalanche network more than double, peaking at over 519,000 addresses. This surge corresponds with a peak DEX volume of $675.4 million.
The Octane upgrade lowered transaction fees, and this reduction has made Decentralized Finance (DeFi) more accessible for users. It dropped transaction fees by about 42%, bringing down costs from $0.05 to $0.03 per transaction.
Market analysts have linked this TVL increase to improved network efficiency and cost reductions following Octane. Emin Gün Sirer, Founder & CEO, Ava Labs, – “This milestone is indicative of the strong momentum and innovative upgrades that are driving engagement within our ecosystem.” Many anticipate this could lead to further institutional investments in Avalanche’s DeFi market.
Historically, similar TVL surges occurred in 2021 with major protocol launches. Analysts compare this rise to similar movements in Solana and Binance Smart Chain during technological upgrades and improved market sentiment phases. Find additional insights on crypto market trends.
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