Avalanche [AVAX] has seen progress on numerous fronts in recent months. Notably, one area where it has grown the most is in the deployment of smart contracts. A surge in contract deployment on the Avalanche network may imply greater protocol use and acceptance. More contracts placed on the network indicates that more developers are building on Avalanche and developing decentralized apps (dApps) that can operate on the network.
This may lead to a broader variety of use cases for the network and perhaps attract more users and projects, increasing demand for the native currency, AVAX. Despite a boom in smart contract usage, Avalanche was unable to do effectively in the DeFi sector.
Its DEX volume has dropped significantly in recent months, from 311 million to 13.74 million (at press time). This had an effect on Avalanche’s TVL, which fell as well. Furthermore, interest in BTC.b has waned. For background, BTC.b is a wrapped Bitcoin token on Avalanche used for DeFi reasons, with the ‘b’ standing for ‘wrapped Bitcoin’. The Bitcoin is kept in custody, and Avalanche issues matching wrapped tokens for use in DeFi activities like as trading, yield farming, and borrowing.
According to Dune Analytics, all Avalanche network DEXes saw a decrease in BTC.b use.
Trader Joe, one of the protocol’s most popular DEXes, suffered the most. According to Dapp Radar, its total volume has dropped by 40.2% in the previous 24 hours. At the time of publication, the network’s total volume was $7.2 million.
The number of transactions on the protocol has decreased by 1.06% in the previous 24 hours as a consequence of this lowering volume. The protocol’s influence was seen in the NFT industry as well. According to Santiment’s statistics, the total number of NFT transactions on Avalanche has decreased dramatically, standing at 581 at press time.