Activity declined on Avalanche last quarter, with both transaction volume and active addresses on Avalanche\u2019s flagship \u201cC-Chain\u201d receding compared to Q2 2023.<\/p>\n
According to data from Nansen, daily active users peaked at 86,000 in Q3, compared to 117,000 during the previous quarter. Daily active transactions also dropped from between 200,000 and 550,000 to range between 136,000 to 504,000, with the metric sinking to a low of 110,000 on Oct. 15.<\/p>\n
Data from DeFi Llama shows Avalanche\u2019s total value locked (TVL) also slumped 27% from $706m to $512M in Q3. Avalanche\u2019s TVL has since rebounded 10% to $564M while daily transactions remain low at 232,000.<\/p>\n
\u201cThe network experienced a downward trend in user activity throughout the quarter,\u201d Nansen said.<\/p>\n
<\/a><\/p>\n <\/a><\/p>\n Avalanche struggled to regroup amid the market downturn, with its TVL plummeting from an all-time high of $11.5B in December 2021.<\/p>\n The once dominant Layer 1 has struggled to carve out a unique identity, with Ethereum\u2019s growing Layer 2 ecosystem<\/a> offering low fees while tapping into Ethereum\u2019s security and undermining the value-proposition of the alternative Layer 1 networks<\/a> that outperformed during the previous bear market.<\/p>\n Avalanche has since sought to focus on building out its subnet architecture<\/a> to attract developers building appchains \u2014 specialized blockchains dedicated to hosting a single decentralized application. However, Avalanche also faces significant competition from Ethereum Layer 3s and \u201cLayer 0\u201d protocols like Cosmos and Polkadot for appchain market share.<\/p>\n The project also allocated $50M<\/a> for purchasing Avalanche-based tokenized assets to support Avalanche developers bringing real-world assets on-chain.<\/p>\n Earlier this week, Emin Gun Sirer, the founder of Avalanche\u2019s development team, Ava Labs, announced that the company had laid off<\/a> 12% of its staff.<\/p>\n![\"the-defiant\"](\"https:\/\/thedefiant.io\/_next\/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2F6oftkxoa%2Fproduction%2Fed09c3f16091d710ff8cbcc026ef2cce7fe34e75-612x356.png&w=828&q=75\")