Once considered a rising star in the blockchain space, Avalanche, is now struggling with a significant decline in user activity and is struggling to achieve enterprise adoption.
Active addresses on Avalanche’s C-chain have fallen to a 12-month low of 31,000, a level not seen since October 2023. This contrasts sharply with the network’s peak of 99,000 active addresses reached in December 2023.
The December surge was driven by increased activity around inscriptions, a method of storing data directly on the blockchain that mirrors Bitcoin’s Ordinals. This surge was further fueled by announcements from JPMorgan and Apollo regarding plans to use Avalanche for real-world asset tokenization, underscoring the network’s potential for institutional adoption.
However, the sharp decline in active users since then highlights the challenges blockchain projects face in maintaining long-term engagement, especially in the current bearish market. The decline in activity can be attributed to a variety of factors, including the overall market downturn, increased competition from other Layer 1 and Layer 2 solutions, and reduced speculative interest.
Avalanche was designed as a high-throughput, low-latency blockchain to address scalability issues common in legacy networks. With a unique consensus mechanism and multi-chain architecture, it was positioned to offer decentralization, scalability, and security. However, sustaining user interest beyond speculative cycles has proven difficult.
*This is not investment advice.
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Source: https://www.bitcoinsistemi.com/bir-zamanlarin-yukselen-yildizi-altcoinde-buyuk-kullanici-dususu-var/
