Investment management company VanEck has warned that Avalanche, the altcoin project that is considered as the rival of Ethereum, has encountered numerous serious problems, which have caught the attention of Turks.
VanEck Analysts: Avalanche Losing in Almost Every Aspect
Analysts at VanEck, an investment management company, stated in their latest report on digital asset markets that Avalanche’s C-Chain’s on-chain activity has dropped to critical levels. The report noted that Avalanche generated approximately $11,000 in transaction fees per day in September, which represents a 98.9% decrease from its peak two years ago. The report states:
Avalanche achieved financial success in the fall of 2021 with its own developed EVM (Ethereum Virtual Machine) Blockchain called C-Chain. During its peak, C-Chain held more than $10 billion TVL (Total Value Locked) in its smart contracts, generated $1 million in transaction fees per day, and consistently had over 100,000 daily active users.
In September 2023, these numbers sharply declined; TVL dropped to $500 million, daily transaction fees dropped to $11,000, and the number of daily active users decreased to 34,000.
Issues Surrounding Avalanche
VanEck’s report highlighted several problems that Avalanche is facing despite its great technology, such as not having the same advantages as Ethereum or other Ethereum competitors, lack of venture capital (VC) support, and having a smaller developer community:
Although we have great confidence in Avalanche’s technical capabilities, we are unsure if Avalanche can use its strong marketing abilities to attract the corporate clients needed to revive Avalanche’s chain-to-chain. Additionally, it has a rapidly diminishing developer base and lacks VC capital that is distancing itself from all but the best projects in crypto, making it difficult for Avalanche to rise in the long term.
Avalanche lacks both a sticky coder base and the support of Jump Capital to create a chain that can handle 1 million TPS (transactions per second), and it is also lacking the evolving developer and capital ecosystem that Ethereum possesses.
However, anything is possible in a bull market, and we continue to see Avalanche announcing fascinating technical solutions to its complex blockchain problems. Nevertheless, AVAX will suffer from this situation until it obtains applications that attract new users.
