Thread by @avaxholic

The growth in total transactions on the red chain of Avalanche (@avax) has been remarkable, reaching an all-time high of 900M with no signs of slowing down. So, what is driving this impressive growth?
A thread 🧵

A closer look reveals that two categories, stablecoins and DeFi, have dominated user activity on the platform, accounting for 34% each of the on-chain activity for $AVAX.

In terms of stablecoins, the activity of $USDC has been consistently increasing over time. However, it is $USDT that has seen a significant surge, reaching an all-time high of 49.82% dominance. Users are actively switching to USDT, which is contributing to this growth.

With this increased liquidity on #Avax, stablecoin liquidity has surged by almost $100 million in just the last two weeks. This may indicate that users are moving away from the high fees of Ethereum ($ETH) and flocking to ecosystems like $AVAX, which offer lower transaction costs

This migration to Avalanche, which is deeply interconnected with Layer Zero Labs (@LayerZero_Labs), aligns with the trend of users seeking more cost-effective options.

The effectiveness of allowing liquidity to flow freely across the #Avax provides a massive competitive advantage. Protocols that adopt this early on can avoid the problem of siloed liquidity. This, combined with the superior user experience, low fees, and on-chain liquidity

As more subnet projects become operational, it is anticipated that Avalanche will experience an inflection point later this year, leading to exponential growth.

#Avax offers a range of advantages, including the best EVM user experience, horizontally scaling and customizable subnets, easy onboarding for new users to web3, and built-in "Warp Messaging" for seamless fund transfers and contract calls between subnets with a single transaction

Previously, user activity on Avalanche was primarily driven by users going to $JOE. However, it appears that users are now utilizing $STG (Stargate Finance) for asset bridging and swapping. An impressive 73% of the daily user activity on $AVAX can be traced back to STG

Overall, Avalanche's growth is propelled by factors such as superior user experience, low fees, and on-chain liquidity. With the ongoing development of subnets and the increasing adoption of Layer Zero tech, Avalanche is well-positioned for continued expansion in the blockchain.