Ava Labs launched Avalanche network in 2020 as a smart contract-capable blockchain platform that prioritizes scalability, security, and decentralization while emphasizing low costs, fast transaction speeds, and eco-friendliness. To power its operations, Avalanche employs its native token (AVAX) and multiple consensus mechanisms. The platform focuses on supporting decentralized applications and autonomous blockchains with fast transaction processing, incentive-based rewards, and superior interoperability. Its robust features will make it a major player in the crypto industry.
Key Developments in the Avalanche Ecosystem in 2023
Avalanche’s TVL currently surpasses $956 million and continues to rise across its decentralized applications (dApps). Let’s look at its developments in 2023 that have helped increase the Avalanche ecosystem’s popularity among crypto enthusiasts.
1. AVAX Price and Transaction Surge
Avalanche's AVAX token experienced a substantial rally, accompanied by a notable increase in large AVAX transactions and trading volumes. The number of large transactions increased significantly, with nearly 1000 transactions over $100,000 recorded in a week, indicating strong bullish sentiment.
2. Avalanche Ordinals and AVAX Token Burning Spike
Avalanche (AVAX) has experienced a significant surge in on-chain activity, largely driven by a rise in transactions related to inscriptions, causing inscriptions to account for 50% of all transactions on the Avalanche network. These inscriptions, which involve creating tokens by writing text in normal blockchain transactions, have become a major part of Avalanche's transaction volume. This development has also driven a surge in AVAX token burning, with users burning 439,000 AVAX, valued at approximately $16.7 million. The surge in inscription-based transactions has placed Avalanche among the top networks in terms of inscription activity, pushing its gas fees to a new high.
3. Record Transaction Count
On November 20, Avalanche’s C-Chain set a new record with an estimated total of 3.07 million transactions. This milestone was part of a broader resurgence in the ecosystem, with weekly transaction volumes reaching levels not seen since May 2022.
4. New Investment and Support
Colony Lab announced a $10 million investment to support the long-term growth of the Avalanche network. This investment signifies a strong belief in the potential of the Avalanche ecosystem and its future developments.
5. Development Upgrades
The first quarter of 2023 saw Avalanche launch several initiatives aimed at attracting developers. These included the launch of HyperSDK, Glacier API, and integration with The Graph. These tools are expected to increase Avalanche’s adoption as a blockchain platform and attract more developers to build on it.
6. Growth in DeFi and Liquid Staking
The growth of the Avalanche DeFi TVL was powered by significant growth in liquid staking derivatives (LSDs) and yield farming platforms within the Avalanche DeFi ecosystem. Benqi liquid staking's TVL grew by 88.6% to $100 million, and Vector Finance, a yield optimization platform, increased by 50% to $36 million.
7. Memecoins Craze on Avalanche Blockchain
There was a notable surge in memecoins, such as Coq Inu, on the Avalanche blockchain, highlighting the growing preference for efficient blockchain networks with low fees. This surge in meme coin activity increased overall transactional activities and drove a 100% growth in active addresses over the past month on the Avalanche network.
These developments collectively depict a vibrant and growing ecosystem for Avalanche, marked by increased transactions, technological advancements, and buying pressure for its native token.
How to Add Avalanche (AVAX) to MetaMask
Connecting MetaMask to Avalanche allows you to enjoy the full range of dApps available on Ethereum without leaving the Avalanche network as an AVAX holder and user.
Moreover, the interoperability of Avalanche makes it an attractive option for developers since it shares the same smart contract programming language, Solidity, as Ethereum, so adding the Avalanche network is easy.
Before starting, ensure you have downloaded and configured your account with MetaMask wallet. Remember to download the wallet only from the official MetaMask website.
Here’s a step-by-step guide on setting up a MetaMask wallet if you are a new user.
Step 1: Select Avalanche As Your Network
If you already have a MetaMask wallet or MetaMask extension, simply open it and go to the designated upper part to choose your network from the dropdown menu. If you are dealing with Avalanche, being in an appropriate network is important.
Step 2: Switch Your Network to Avalanche on MetaMask
Sometimes, you will be directed to the menu with popular networks, including Avalanche. You can choose from there by clicking Switch to Network in the pop-up window. If not available, follow the next steps.
Step 3: Select Custom Network to Add Avalanche
If you do not have Avalanche network as an option, you can also add it by clicking on Custom Network and adding the network details provided below:
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Network Name: Avalanche Network
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New RPC URL: https://api.avax.network/ext/bc/C/rpc
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Chain ID: 43114 or 0xa86a
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Currency Symbol: AVAX
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Block Explorer URL: https://snowtrace.io/
You should enter these details in the Custom Network settings and click Add at the bottom.
That's it! You have successfully added the Avalanche network to your MetaMask wallet!
Step 4: Import Avalanche Tokens
You can import tokens of the Avalanche network using the Import tokens option in the Tokens tab of your MetaMask wallet. Click this option, enter the Token contract address, Token symbol, Token decimal, and click Next to import your tokens to your MetaMask wallet.
Once you have set up your wallet, the next step is sending your tokens from your wallet or exchange.
Avalanche Blockchains
The Avalanche network comprises three distinct blockchains. Each of these blockchains offers unique functionalities that empower users to achieve their goals in new and innovative ways:
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The Exchange Chain (X-Chain) is designed to manage assets and operates on the Avalanche consensus protocol.
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Only the Contract Chain (C-Chain) is responsible for smart contract creation and utilizes the Snowman consensus protocol.
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Finally, the Platform Chain (P-Chain) coordinates validators and also employs the Snowman consensus protocol. By using these diverse blockchains, Avalanche can offer advanced functionalities and meet the unique needs of its users.
Why is this important? You need to know that only Avalanche Mainnet C-Chain is compatible with MetaMask.
You can lose your assets if you do not operate within this chain and transfer funds to your wallet from a chain other than C-chain.
Closing Thoughts
MetaMask is a game-changer for the crypto community with its cross-chain capabilities and easy-to-use interface. With the Avalanche ecosystem expanding and offering more opportunities for crypto lovers and investors, a wallet like MetaMask to interact with the Avalanche network and support cross-chain transactions could be an attractive option to consider.
Although MetaMask was initially developed for Ethereum, it has expanded to support multiple blockchain networks, including BNB Chain, Avalanche, Polygon, and more. To access the full range of DeFi platforms and dApps within each blockchain ecosystem, you must learn how to add each network manually.
Further Reading
