Introduction

Avalanche is an open-source platform for launching decentralized applications and enterprise blockchain deployments in one interoperable, highly scalable ecosystem. Avalanche is the first decentralized smart contracts platform built for the scale of global finance, with near-instant transaction finality. Ethereum developers can quickly build on Avalanche as Solidity works out-of-the-box.

A key difference between Avalanche and other decentralized networks is the consensus protocol. Over time, people have come to a false understanding that blockchains have to be slow and not scalable. The Avalanche protocol employs a novel approach to consensus to achieve its strong safety guarantees, quick finality, and high-throughput without compromising decentralization.

Avalanche Fees

In order to prevent spam, transactions on Avalanche require the payment of a transaction fee. The fee is paid in AVAX. The transaction fee is burned (destroyed forever).

When you issue a transaction through Avalanche’s API, the transaction fee is automatically deducted from one of the addresses you control.The Avalanche C-Chain uses an algorithm to determine the "base fee" for a transaction. The base fee increases when network utilization is above the target utilization and decreases when network utilization is below the target.

As mentioned,Transaction fees on Avalanche are paid in AVAX. In order to do transactions, you need AVAX. for example, when you bridge over assets, you should swap some of them for AVAX so you can pay transaction fees.

Approach :

in this dashboard the following metrics had been Analysed :

 - Avalanche daily transactions and Fees
 - daily FEE per TX index
 - Daily and Cumulative Fees Generated by Sectors
 - Fees Distribution by SECTORS
 - DEXs - Cumulative Fees by Platforms - Fees Distribution by Platforms
 - Defi - Cumulative Fees by Platforms - Fees Distribution by Platforms
 - NFT- Cumulative Fees by Platforms - Fees Distribution by Platforms
 - CEX- Cumulative Fees by Platforms - Fees Distribution by Platforms
 - DApp- Cumulative Fees by Platforms - Fees Distribution by Platforms
 - layer2- Cumulative Fees by Platforms - Fees Distribution by Platforms
 - top 10 platforms in terms of fee generating since July 1st, 2022
 - top 10 platforms in terms of FEE_per_TX since Jan 1s, 2022
 - Top 10 wallets that have generated the most amount of fees since July 1st, 2022
 - Avalanche vs Ethereum - Daily Fees
 - Fee per TX on Different Sectors - Fee per TX on Different platforms

looking at the Avalanche vs ETH daily fees chart, the overall trend of daily fees trend for both networks was similar, and it can be said that, there is a correlation between them.

it is evident that both ethereum and Avalanche daily fees change over time. This could be due to either increasing transaction volume or increase in transaction fees or both.

However, it remains that Avalanche and ethereum fees follow the same trajectory, indicating some form of correlation. Moreover, we do not see any huge diversion.

Since Avalanche is an L2 (second layer) of Ethereum, it is reasonable to lean towards the theory that increasing transaction volumes on Avalanche , which are eventually settled on Ethereum are responsible for the correlation.

Findings :

• Dex has had the most generated fees among in Avalanche Sectors , followed by dapp and layer2.

• Break Down Fee Generating by Sub Platforms :

• DEX :

  Trader Joe (65%), Curve1 (14.3%) and Pangolin Router(10%) , produced the highest amount of fees

• Dapp:

  Tether USDT token(26.8%) and Step app fitfi token (22%)produced the highest amount of fees

• NFT :

  Chikn farm:Egg (52%),Chikn farm:Fed (20%) produced the highest amount of fees

• Layer2 :

  Synapse Bridge (46%) , Avalanche bridge usdc.e (18%) produced the highest amount of fees

• Defi :

  aave pool v3(31%),aave lendingpool(8.5%) and AAVE weth gateway (7%) produced the highest amount of fees

• top platforms in terms of fee generating since July 1st, 2022 :

  Curve1(48%), paraswap router(11.7%) and aave lendingpool v2 1 (8.72%) produced the highest amount of fees among all subplatforms of Avalanche

• top Sectors in terms of FEE_per_TX since June 1s, 2022

  Dex and Defi was most expensive sectors to do transactions

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• the Dex and defi Sectors have had the most exponential trend in terms of fee generating among in Sectors

• the chart shows the daily transactions count and fees generated on Polygon since May 29, 2022 . there is a positive correlation between fees and tx count because of fees nature in Avalanche network.June 12, was the peak day of the chart in terms of both fees and tx count.

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• as the second chart illustrates, the fee_per_tx was high on June 13 and 18th.

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• looking at the third chart which shows the daily fees generated by each sector, most of the fees was generated by dex on mentioned days

• The pie chart shows that, Dex sector has had the most generated fees among in Sectors , followed by defi and nft.