Overview

Avalanche is a blockchain that promises to combine scaling capabilities and quick confirmation times through its Avalanche Consensus Protocol.

Avalanche has sevelar important benefits that make it one of the most promising crypto chains:

• Interoperability is the capacity to trade and interact with other forms of cryptocurrency and data from other platforms. Avalanche is highly interoperable, as it allows for the creation of different subnets, with its blockchain serving as a common platform. This structure enables different blockchains to interoperate with each other, and share assets and data.
• Scalability: Many other blockchains currently on the market are not scalable, and those that are, lose functionality when trying to scale. It’s a long-running and well-documented issue for older blockchain models. Take Bitcoin (BTC), as an example. Each transaction uses enormous energy and computing power to complete. Ethereum, on the other hand, is not much faster — it can only process 15 transactions per second. These limitations make these blockchains difficult to scale. But Avalanche was built to overcome this very problem, and even boasts more validators than other networks, plus speeds of 4,500 transactions per second (TPS). This makes the Avalanche blockchains potentially infinitely scalable. And, it achieves this without compromising its decentralization — thanks to its three-blockchain system and interoperability with multiple blockchains.
• Usability: mainly, how easy it is to adopt and implement for various applications and uses. For both dApp developers and casual traders, Avalanche has proven in multiple cases to be extremely user-friendly. Avalanche’s blockchain system allows all users and organizations who wish to utilize their tech to deploy their L1 and L2 blockchains.
• Transaction fees: To make each transaction secure, and to prevent spam orders, each transaction made on the Avalanche blockchain requires a payment of a transaction fee. This is similar to Ethereum’s gas prices and is paid in AVAX. This transaction fee is automatically deducted from the address you control.

Methodology

This dashboard is a representation of how USDC is doing in terms of transactions, swaps in comparison to transfers health accross Avalanche blockchain. As well, a comparison between USDC mints and burns is presented.

The analysis provides hourly and daily metrics about:

• USDC swaps and transfers in terms of:

  • Daily and cumulative number of transactions over time

  • Daily and cumulative users over time

  • Daily and cumulative volume over time

  • Daily average volume over time

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• USDC mints and burns in terms of:

  • Daily and cumulative number of transactions over time

  • Daily and cumulative users over time

  • Daily and cumulative volume over time

  • Daily average volume over time

    \

USDC swaps vs transfers

Hourly

Daily

In these first graphs we can see the results of the USDC swaps and transfers metrics and see a comparison between the two, as far as the number of events is concerned, we can see that as usual, there are more swaps than transfers since the beginning of the period under evaluation. We can see that the overall number of transactions has been decreasing from July to October 2022. However, from November onwards, the number started to rise, mostly because swaps increased. The result was most noticeable just during the FTX news and its collapse, where the number of swaps doubled. Since July 2022, there have been a total of 1.05M USDC transfers pr around 1.35M swaps. As far as the distribution of transactions is concerned, we can see that swaps represent 60% while transfers represent 40%. However, over the last few days, it seems that the percentage of swaps has gone down and now transfers are more common, reaching 55%.

In terms of users, we can see that both have similar trajectories, but it seems that swaps have had a bit more volume from the beginning. But this seems to be changing over the last few days as with events. In general, active users have been dropping since July 2022, but since FTX, it seems that the situation has been reversed.

Regarding the volume, we can see that in most of the first days/weeks, there was more volume of swaps than transfers, however, this seems to be reversing. Although on the day of the FTX announcement, the vomuen swapped peaked at over 1.5B USDC swapped. Since July 2022, a total of over 31B USDC have been transferred for 40B USDC swapped. In this case we can clearly see the change in distributions. While swaps dominated since July with around 70%, this percentage has gradually dropped to 20% in the last few days, giving way to transfers. There has also been a reversal in the average daily volume, where at the beginning there was more volume on average swapped than transferred, but now the situation is reversed.

USDC mints and burns

Hourly

Daily

In terms of mints and burns, we can observe that there was an important peak during August, but in this case, the FTX news seems to have had no impact. As far as the evolution is concerned, it seems to have been fairly stable with similar values. Since July 2022, there have been a total of 1400 mints and 4119 burns. The percentage of transactions seems to vary quite a lot but we can see that it is around 60% burns and 40 % mints.

The volume, as with the events, has also been fairly stable despite the large number of burns during August. Since July 2022, there has been a total of 1.18B USDC minted for a total of 1.75B of USDC burnt. In this case, we see that the distribution is quite similar for both having around 50% volume each. The average daily volume also seems to have been quite stable with some spontaneous peaks. Only in August we can see how the average daily minted volume increased considerably.

Key insights

• The overall number of transactions has been decreasing from July to October 2022. However, from November onwards, the number started to rise, mostly because swaps increased. The result was most noticeable just during the FTX news and its collapse, where the number of swaps doubled.
• In terms of users, we can see that both have similar trajectories, but it seems that swaps have had a bit more volume from the beginning. But this seems to be changing over the last few days as with events. In general, active users have been dropping since July 2022, but since FTX, it seems that the situation has been reversed.
• Regarding the volume, we can see that in most of the first days/weeks, there was more volume of swaps than transfers, however, this seems to be reversing. Although on the day of the FTX announcement, the vomuen swapped peaked at over 1.5B USDC swapped.
• In terms of mints and burns, we can observe that there was an important peak during August, but in this case, the FTX news seems to have had no impact. As far as the evolution is concerned, it seems to have been fairly stable with similar values. Since July 2022, there have been a total of 1400 mints and 4119 burns. The percentage of transactions seems to vary quite a lot but we can see that it is around 60% burns and 40 % mints.
• The volume, has also been fairly stable despite the large number of burns during August. Since July 2022, there has been a total of 1.18B USDC minted for a total of 1.75B of USDC burnt. In this case, we see that the distribution is quite similar for both having around 50% volume each. The average daily volume also seems to have been quite stable with some spontaneous peaks. Only in August we can see how the average daily minted volume increased considerably.